KARACHI: Gadoon Textile Mills Limited has reported a strong financial performance for the year ended June 30, 2026, posting a nearly 10% increase in annual profit while announcing a cash dividend of Rs5 per share for its shareholders. The Board of Directors approved the financial results during its meeting held on August 4, 2026.
The company recorded net sales of Rs75.99 billion, up 7.07% from Rs70.98 billion in the previous fiscal year. Despite continued pressure on gross margins due to elevated energy prices and higher conversion costs, Gadoon Textile Mills delivered a net profit of Rs2.63 billion, representing a 9.89% increase over the Rs2.39 billion earned in FY2025.
Earnings per share (EPS) improved to Rs93.78, compared with Rs85.33 a year earlier, reflecting the company’s resilient operational performance amid a challenging business environment.
Gross profit stood at Rs5.95 billion, slightly lower than last year’s Rs6.33 billion, as rising utility tariffs, logistics expenses and manufacturing costs continued to impact margins. However, the company benefited from lower finance costs, improved operating efficiencies and a Rs932 million remeasurement gain related to the settlement of its SIDC liability, which supported overall profitability.
Management noted that overall yarn sales increased during the year, while knitted bedding products also registered steady growth, contributing to higher revenues. The company continued to optimize its product mix, improve energy efficiency and expand renewable energy utilization to mitigate the impact of rising operating costs.
During FY2026, Gadoon Textile Mills invested approximately Rs6.02 billion in capital expenditure, primarily for advanced spinning technology, renewable energy projects and value-added manufacturing facilities. These investments are aimed at enhancing productivity, improving energy efficiency and strengthening the company’s competitiveness in domestic and export markets.
The company also highlighted improved operating cash flows, with net cash generated from operating activities reaching Rs9.48 billion, a significant turnaround from the previous year’s negative operating cash flow.
Looking ahead, management acknowledged that Pakistan’s textile sector continues to face challenges, including elevated energy costs, global demand uncertainty, exchange-rate volatility and inflationary pressures. Nevertheless, it remains optimistic that operational improvements, strategic investments and a focus on higher value-added products will support sustainable long-term growth.
In addition to approving the financial statements, the Board recommended a final cash dividend of Rs5 per share, while no bonus shares or rights shares were announced. The company’s Annual General Meeting (AGM) is scheduled for September 28, 2026, and the share transfer books will remain closed from September 21 to September 28, 2026.
