Ellcot Spinning Mills Posts Significant Profit Growth in FY2026

Ellcot Spinning Mills Limited has reported a substantial improvement in its financial performance for the year ended June 30, 2026, with profit after tax rising sharply compared with the previous year.

According to the company’s financial statements, revenue from contracts with customers increased to Rs16.23 billion in FY2026 from Rs15.89 billion in FY2025. Although the increase in revenue was modest, improved profitability helped the company deliver a much stronger bottom line. 283762

Profit rises sharply

The company recorded a gross profit of Rs1.13 billion, compared with Rs970.92 million a year earlier. Operating profit also improved to Rs741.76 million, up from Rs715.22 million in FY2025. 283762

The most notable improvement came at the bottom line. Ellcot Spinning Mills posted profit after income tax of Rs206.18 million, compared with Rs76.62 million in the previous financial year. This represents an increase of roughly 169% year-on-year.

The company’s earnings per share also strengthened considerably, rising from Rs7.00 to Rs18.83. 283762

Lower finance costs support earnings

Finance costs declined to Rs297.99 million during FY2026 from Rs330.61 million in FY2025. The reduction in financing costs provided additional support to profitability, while profit before levies and income taxes increased to Rs443.77 million from Rs384.62 million. 283762

The company also recorded a lower provision for income taxes during the year, at Rs140.18 million compared with Rs185.54 million in the previous year. 283762

Stronger operating cash generation

Ellcot Spinning Mills also showed a major improvement in cash generation from its core operations. Cash generated from operations reached Rs2.26 billion in FY2026, compared with a small cash outflow of Rs1.84 million in FY2025.

After payments for financing costs, taxes and employee retirement benefits, net cash generated from operating activities stood at Rs1.61 billion, compared with a net outflow of Rs654.82 million a year earlier. 283762

The company continued investing in its operations, spending Rs687.46 million on property, plant and equipment during the year. 283762

Balance sheet remains substantial

At June 30, 2026, Ellcot Spinning Mills reported total assets of approximately Rs10.97 billion, compared with Rs11.22 billion at the end of FY2025. Property, plant and equipment increased to Rs4.99 billion from Rs4.79 billion. 283762

The company’s total equity also increased to Rs4.47 billion, compared with Rs4.27 billion a year earlier. Retained earnings stood at approximately Rs4.28 billion at the end of FY2026. 283762

At the same time, total liabilities declined to Rs6.50 billion from Rs6.95 billion, reflecting a reduction in the company’s overall liability position. Long-term borrowings fell from Rs3.22 billion to Rs2.91 billion, while short-term borrowings declined to Rs362.51 million from Rs778.75 million. 283762

Dividend and shareholder value

The statement of changes in equity shows that the company paid a final dividend of 40%, equivalent to Rs4 per ordinary share, during FY2026, compared with a 50% dividend or Rs5 per ordinary share in the preceding year. 283762

Despite the lower dividend rate, the substantial improvement in earnings resulted in a significant increase in earnings per share, highlighting the stronger profitability achieved during the year.

Outlook

Ellcot Spinning Mills’ FY2026 results show a company that made meaningful progress in profitability, cash generation and debt reduction. Revenue growth remained relatively moderate, but stronger gross and operating profits, lower finance costs and improved operating cash flows helped drive a major increase in net earnings.

With profit after tax rising to Rs206.18 million and operating cash generation reaching Rs1.61 billion, the financial statements indicate a considerably stronger year for the company compared with FY2025. 283762 283762

Alternative headline:
Ellcot Spinning Mills’ FY2026 Profit Jumps 169% to Rs206 Million