Hamid Textile Mills Reports Annual Loss of Rs26.39 Million for FY2026

Hamid Textile Mills Limited has reported a loss after taxation of Rs26.39 million for the financial year ended June 30, 2026, compared with a loss of Rs40.22 million in the previous financial year.

According to the financial results submitted to the Pakistan Stock Exchange, the company’s revenue after tax stood at Rs910.09 million during FY2026, down from Rs960.75 million in FY2025. Despite the lower revenue, the company recorded a gross profit of Rs26.39 million, compared with Rs33.16 million a year earlier.

Financial Performance

The company’s cost of revenue declined to approximately Rs883.70 million during FY2026 from Rs927.59 million in FY2025. However, administrative expenses remained significant at Rs46.35 million, while finance costs increased to Rs7.51 million from Rs6.25 million.

Hamid Textile Mills recorded a loss before levy and taxation of Rs29.27 million, compared with Rs18.02 million in FY2025. After accounting for levy and taxation, the company posted a loss before taxation of Rs38.05 million. A tax income of approximately Rs11.66 million reduced the final loss after taxation to Rs26.39 million.

The company’s loss per share improved to Rs1.99 from Rs3.03 in the previous year.

Assets and Liabilities

The statement of financial position shows total assets of approximately Rs778.43 million as of June 30, 2026, compared with Rs806.34 million a year earlier.

Property, plant and equipment stood at Rs494.09 million, down from Rs543.78 million. Meanwhile, current assets increased to approximately Rs284.34 million from Rs262.56 million.

Cash and bank balances also improved significantly, reaching Rs30.17 million at the end of FY2026 compared with Rs18.52 million in FY2025.

Equity Position

The company’s total equity declined to approximately Rs289.65 million at June 30, 2026, from Rs333.65 million in the previous year. Accumulated losses increased to Rs265.38 million, while the surplus on revaluation of fixed assets stood at approximately Rs422.32 million.

Operating Cash Flow Improves

Despite reporting a net loss, Hamid Textile Mills generated Rs18.85 million in net cash from operating activities during FY2026, compared with Rs20.19 million in FY2025.

The company spent Rs4.10 million on fixed assets during the year, significantly below the Rs26.55 million spent in FY2025. Cash used in investing activities therefore stood at Rs4.10 million.

Financing activities resulted in a net cash outflow of Rs3.10 million. Overall, cash and cash equivalents increased by approximately Rs11.65 million, taking the closing balance to Rs30.17 million.

No Dividend Announced

The company’s board, at its meeting held on September 25, 2026, recommended no cash dividend, bonus shares or right shares for the year ended June 30, 2026. The company also reported no other corporate action or price-sensitive information in the announcement.

Hamid Textile Mills also announced that its Annual General Meeting will be held on October 16, 2026, at its registered office in Lahore.

Overall, the FY2026 results show a decline in revenue and gross profit, while the company continued to report a net loss. At the same time, operating cash generation remained positive and the year-end cash balance improved compared with the previous year.