Din Textile Mills Limited has returned to profitability at the quarterly level, posting a profit after tax of Rs60.76 million for the quarter ended March 31, 2026, compared with a loss of Rs67.21 million in the same quarter last year.

The company’s latest financial results show a notable improvement in profitability despite a decline in sales during the period. The results were approved by the Board of Directors at its meeting held on April 24, 2026. The company did not recommend any cash dividend, bonus shares or right shares.

Sales decline, but profitability improves

According to the financial statements, Din Textile Mills recorded quarterly sales of Rs8.08 billion, down from Rs10.30 billion in the corresponding quarter of the previous year.

Despite the lower revenue, the company maintained a gross profit of Rs903.34 million, compared with Rs999.21 million a year earlier. The decline in gross profit was therefore considerably smaller than the decline in sales.

A major positive development came from the company’s financing costs. Finance cost fell to Rs480.63 million during the quarter from Rs671.70 million in the same period last year. This reduction helped ease pressure on the company’s bottom line.

After accounting for operating expenses, other income, levies and taxation, Din Textile Mills recorded a profit before tax of Rs137.88 million and ultimately posted a net profit of Rs60.76 million. Earnings per share stood at Rs1.16, compared with a loss per share of Rs1.28 in the same quarter last year.

Nine-month loss narrows substantially

For the nine-month period ended March 31, 2026, the company’s performance also showed a significant improvement.

Sales during the nine months stood at Rs24.67 billion, compared with Rs32.51 billion in the same period last year. Gross profit amounted to Rs2.72 billion, while finance costs declined to Rs1.61 billion from Rs2.41 billion.

As a result, the company’s loss before tax and levies turned positive at Rs341.97 million, compared with a loss of Rs154.63 million in the previous-year period. However, after levies and taxation, Din Textile Mills reported a net loss of Rs61.16 million, substantially lower than the Rs562.34 million loss recorded in the nine months ended March 31, 2025.

The improvement means the company has significantly reduced its accumulated loss for the current nine-month period, even though sales remain below the previous year’s level.

Cash generation provides another positive signal

The company’s cash flow statement also points to an improvement in operating performance. Din Textile Mills generated Rs6.39 billion in cash from operations during the nine months, compared with Rs479.59 million in the same period last year.

After finance costs, taxes and staff retirement benefits, net cash generated from operating activities stood at Rs4.50 billion, compared with a net cash outflow of Rs1.88 billion a year earlier.

However, financing activities resulted in a net cash outflow of approximately Rs4.84 billion, mainly reflecting repayments and reductions in financing. Cash and cash equivalents consequently declined to Rs112.55 million at March 31, 2026, from Rs883.04 million at the beginning of the period. The cash-flow statement is presented on page 5 of the company’s interim report.

Financial position remains under focus

As of March 31, 2026, Din Textile Mills reported total assets of approximately Rs31.43 billion, compared with Rs34.49 billion at June 30, 2025.

The company had secured long-term financing of Rs6.33 billion, while short-term borrowings stood at approximately Rs10.00 billion. Total current liabilities were around Rs16.66 billion.

Shareholders’ equity stood at approximately Rs7.98 billion at the end of the nine-month period.

A step toward recovery

Din Textile Mills’ latest results present a mixed but improving picture. Lower sales remain a challenge, but the company has managed to strengthen its bottom line through better cost management and a substantial reduction in finance costs.

The shift from a quarterly loss to a profit, together with the sharp reduction in the nine-month loss and stronger operating cash generation, suggests that the company’s financial position has improved compared with the previous year.

The key challenge going forward will be whether Din Textile Mills can translate the improved profitability and cash generation into sustained earnings growth while rebuilding sales and managing its financing obligations.

For now, the return to quarterly profitability marks an encouraging development for the textile manufacturer.