Ghazi Fabrics International Limited (GFI) has reported a challenging financial year ended June 30, 2026, with a sharp decline in sales and a wider net loss compared with the previous year. The company’s financial statements also show significant changes in its asset base, equity position and cash flows during the year.

According to the company’s financial results submitted to the Pakistan Stock Exchange, the Board of Directors recommended no cash dividend, bonus shares or right shares for the year ended June 30, 2026. The company has scheduled its Annual General Meeting for October 27, 2026, in Lahore.

Sales fall sharply

The income statement shows that net sales declined dramatically to approximately Rs1.07 million in FY2026, compared with Rs594.31 million in FY2025. Cost of goods sold stood at approximately Rs226.14 million, resulting in a gross loss of about Rs225.07 million.

The company also recorded administrative and other operating expenses during the year. Other operating charges were approximately Rs246.45 million, while selling and distribution costs were around Rs1.30 million.

As a result, Ghazi Fabrics recorded an operating loss of approximately Rs518.19 million, compared with an operating loss of Rs370.46 million in the previous year.

Net loss widens

The company’s loss before taxation increased to approximately Rs519.34 million from Rs375.17 million in FY2025. After taxation, the loss for the year reached approximately Rs604.94 million, compared with a loss of Rs376.84 million in the preceding year.

The loss per share also increased, moving from Rs11.55 per share in FY2025 to Rs18.54 per share in FY2026.

The comprehensive income statement shows a total comprehensive loss of approximately Rs604.74 million for FY2026, compared with Rs376.77 million in FY2025.

Balance sheet reflects major changes

Ghazi Fabrics’ total assets stood at approximately Rs3.79 billion at June 30, 2026, down from Rs4.65 billion a year earlier. Property, plant and equipment declined to approximately Rs2.26 billion, compared with Rs3.96 billion in FY2025.

The balance sheet also reports assets classified as held for sale of approximately Rs776.27 million, a category that was not present in the previous year’s comparative figures. The financial statements show that this change was accompanied by movements in the company’s revaluation surplus and revenue reserves.

Total equity declined to approximately Rs3.75 billion at June 30, 2026, compared with Rs4.59 billion at the end of FY2025.

Cash position remains limited

The cash-flow statement shows that the company used approximately Rs531.80 million in operating activities during FY2026, compared with Rs357.99 million used in the previous year.

At the same time, investing activities generated approximately Rs595.18 million, largely reflecting proceeds from the disposal of property, plant and equipment. Financing activities used approximately Rs218.37 million, mainly related to repayment of directors’ and sponsors’ loans.

After these movements, cash and cash equivalents at the end of FY2026 stood at approximately Rs4.99 million, compared with Rs9.71 million at June 30, 2025.

Directors’ loans remain a significant balance

The statement of financial position reports an unsecured directors’ loan of approximately Rs4.10 billion at June 30, 2026, compared with Rs4.32 billion in FY2025. The statement of changes in equity also records movements involving loans from directors during the year.

This remains a significant component of the company’s financial structure relative to its reported equity.

AGM scheduled for October 27

The company has announced that its Annual General Meeting will be held at 10:30 a.m. on October 27, 2026, in Lahore, subject to the approval of the stock exchange. The share transfer books are scheduled to remain closed from October 20 through October 27, 2026, both days inclusive.

The FY2026 results therefore present a year marked by substantially lower reported sales, a larger net loss, reduced total assets and continued reliance on directors’ financing. The financial statements also show significant asset disposals and a substantial amount classified as held for sale, developments that will be important areas for shareholders to consider when reviewing the company’s financial position.