Faisal Spinning Mills Limited reported a challenging financial performance for the year ended June 30, 2026, with the company recording a loss after taxation of Rs413.5 million, compared with a loss of Rs269.3 million in the previous financial year.
According to the company’s financial statements, net sales stood at Rs45.84 billion during FY2026, slightly below the Rs46.20 billion recorded in FY2025. The decline in sales was accompanied by pressure on gross profitability, with gross profit falling to Rs3.49 billion from Rs3.67 billion a year earlier.
Higher Other Income Provides Some Support
Faisal Spinning Mills generated Rs547.7 million in other income during the year, more than double the Rs238.1 million reported in FY2025. This helped lift the company’s profit before operating expenses to approximately Rs4.03 billion, compared with Rs3.91 billion in the preceding year.
However, the benefit from higher other income was not enough to offset the company’s operating and financing costs. Distribution expenses amounted to approximately Rs1.44 billion, while administrative expenses were around Rs563.6 million. Finance costs remained significant at approximately Rs1.51 billion.
Loss Widens at Bottom Line
The company reported profit before levies and taxation of Rs558.8 million, compared with Rs312.2 million in FY2025. After accounting for levies and taxation, however, Faisal Spinning Mills posted a loss after taxation of Rs413.5 million, against a loss of Rs269.3 million a year earlier.
The company’s loss per share increased to Rs41.35, compared with Rs26.93 in FY2025.
The statement of comprehensive income also shows that the company recorded an actuarial gain of approximately Rs5.14 million related to employee retirement benefits. After other comprehensive income, the total comprehensive loss for FY2026 stood at Rs408.6 million, compared with Rs314.0 million in the previous year.
Operating Cash Flow Turns Strongly Positive
Despite the reported accounting loss, the company’s cash-flow statement presents a different picture of its operating cash position.
Faisal Spinning Mills generated approximately Rs6.72 billion in net cash from operating activities during FY2026, compared with an operating cash outflow of approximately Rs5.47 billion in FY2025. The improvement was supported by movements in working capital, including changes in stock in trade, trade debts, loans and advances, trade deposits and trade payables.
The company also reported approximately Rs1.48 billion in net cash used in investing activities, mainly reflecting purchases of property, plant and equipment and short-term investments.
Financing activities resulted in a net cash outflow of about Rs5.43 billion, including repayment of long-term financing and a decline in short-term borrowings. As a result, cash and cash equivalents declined from approximately Rs349.0 million at the beginning of the year to Rs167.6 million at June 30, 2026.
Financial Position Remains an Important Focus
The statement of financial position shows total equity and liabilities of approximately Rs34.35 billion as of June 30, 2026, compared with Rs39.74 billion a year earlier. Non-current liabilities increased to approximately Rs6.12 billion, while current liabilities declined to around Rs16.46 billion from Rs22.14 billion.
The financial statements indicate that Faisal Spinning Mills continued to face significant financing costs and pressure on profitability during FY2026. At the same time, the substantial improvement in operating cash generation represents an important development in the company’s cash-flow position.
Overall, FY2026 was marked by lower sales, reduced gross profit and a larger after-tax loss, although stronger other income and a significant turnaround in operating cash flows provided some offsetting positives. The company’s financial performance will therefore remain closely linked to its ability to improve margins, manage financing costs and sustain operating cash generation in the coming period.
