Fazal Cloth Mills Delivers Sharp Profit Growth in FY2026

Fazal Cloth Mills Limited has reported a significant improvement in its financial performance for the year ended June 30, 2026, with profitability rising substantially compared with the previous year.

According to the company’s financial results, the Board of Directors approved the audited accounts at its meeting held on September 30, 2026. The company also recommended a 150% cash dividend, while no bonus shares or right shares were announced. 284041

Revenue and Profit Show Strong Improvement

Fazal Cloth Mills recorded revenue of Rs96.02 billion during FY2026, compared with Rs90.00 billion in the previous year. This represents growth of around 6.7%.

The company’s gross profit increased to Rs8.95 billion, compared with Rs7.70 billion a year earlier. Profit from operations also improved, reaching Rs8.15 billion from Rs6.90 billion in FY2025.

The strongest improvement came at the bottom line. Profit after taxation climbed to Rs1.57 billion, compared with Rs382.76 million in the previous year. This represents an increase of more than four times year-on-year. 284041

Earnings Per Share Surge

The sharp increase in profitability was also reflected in the company’s earnings per share.

Fazal Cloth Mills reported basic and diluted earnings per share of Rs52.44 for FY2026, compared with Rs12.76 in FY2025. The improvement highlights the substantial increase in earnings available to shareholders during the year. 284041

Balance Sheet Continues to Expand

The company’s total assets increased to approximately Rs133.42 billion as of June 30, 2026, compared with Rs115.45 billion a year earlier.

Total equity also rose to around Rs75.68 billion, up from Rs56.44 billion in FY2025. The increase reflects the stronger profitability and changes in the company’s reserves and asset base. 284041

Property, plant and equipment stood at approximately Rs68.12 billion, compared with Rs52.17 billion in the previous year, indicating continued investment in the company’s operating assets. 284041

Healthy Operating Cash Generation

Fazal Cloth Mills generated Rs9.67 billion in net cash from operating activities during FY2026, a substantial improvement over the Rs2.24 billion generated in the previous year.

However, investment and financing activities resulted in an overall reduction in cash and cash equivalents. Capital expenditure during the year stood at approximately Rs3.46 billion, while net cash used in financing activities was about Rs6.12 billion. As a result, cash and cash equivalents at year-end stood at a negative balance of approximately Rs1.46 billion. 284041

150% Cash Dividend for Shareholders

One of the key highlights of the announcement is the company’s recommendation of a 150% cash dividend, with no bonus shares or right shares proposed.

The Annual General Meeting is scheduled to be held on October 28, 2026, at 11:30 a.m. in Lahore. The company also announced that its share transfer books will remain closed from October 22 to October 28, 2026, both days inclusive. 284041

Stronger Year for Fazal Cloth Mills

Overall, FY2026 proved to be a considerably stronger year for Fazal Cloth Mills. Revenue expanded, operating profit improved and, most importantly, profit after tax increased sharply. The jump in earnings per share, together with the proposed 150% cash dividend, provides a positive headline for shareholders.

At the same time, the company’s cash-flow statement shows that significant funds were committed to investment and financing activities during the year. Investors will therefore be watching how Fazal Cloth Mills manages its cash position while maintaining profitability and shareholder distributions in the coming year.

Source: Fazal Cloth Mills Limited, audited financial statements for the year ended June 30, 2026. 284041