ICC Industries Limited Posts Rs. 9.62 Million Profit in FY2026 as Revenue Grows 30%

Lahore: ICC Industries Limited, formerly known as ICC Textiles Limited, has reported a significant improvement in its financial performance for the fiscal year ended June 30, 2026, returning to profitability after recording a loss in the previous year. According to the company’s Annual Report 2026, the improvement was supported by higher revenue from warehousing services and better utilization of its factory premises.

Revenue Increases to Rs. 65.23 Million

The company recorded revenue of Rs. 65.23 million in FY2026, compared with Rs. 50.15 million in FY2025, representing an increase of approximately 30.1%.

Gross profit reached Rs. 30.51 million, while operating profit stood at Rs. 15.65 million. The company posted a net profit after tax of Rs. 9.62 million, reversing a net loss of Rs. 16.54 million reported in the preceding fiscal year.

Earnings per share also improved, rising to Rs. 0.32 from a loss per share of Rs. 0.55 in FY2025.

Warehousing Services Support Business Recovery

The increase in revenue was primarily driven by greater utilization of the covered area at the company’s factory premises for warehousing services. The company was able to provide these services to customers at better rates, contributing to stronger revenue generation.

ICC Industries discontinued its textile operations in 2018 and subsequently sold its textile machinery. It has since shifted its focus towards warehousing services at its mill premises and leasing its labour colony.

This change in business strategy has allowed the company to generate income from its existing properties while pursuing a more sustainable operating model.

Cost Management and Other Income

The company’s financial performance also reflected changes in its expense structure. Administrative expenses declined by Rs. 8.49 million during the year, primarily because the chief executive officer voluntarily forewent his salary.

However, direct costs increased by Rs. 14.63 million, mainly due to additional depreciation charges on buildings transferred from investment property to property, plant and equipment.

Other income included the reversal of certain accruals amounting to Rs. 15.53 million that were no longer payable. This contributed to the reported financial results and is an important factor when assessing the sustainability of the company’s return to profitability.

Financial Position Remains a Key Challenge

Despite the improved earnings, ICC Industries continues to face financial challenges. Its accumulated losses stood at Rs. 763.87 million as of June 30, 2026, while current liabilities exceeded current assets by approximately Rs. 262.53 million.

The company’s auditors highlighted a material uncertainty that may cast significant doubt on its ability to continue as a going concern. Management, however, has prepared the financial statements on a going-concern basis, citing its plans to improve profitability, manage liabilities and secure adequate working capital from lenders and sponsors.

The company is relying on income generated from its warehousing operations and other property-related activities to strengthen cash flow and support its ongoing business.

Outlook: Focus on Sustainable Growth

Looking ahead, the company intends to build on the progress achieved during FY2026 by continuing to improve the utilization of its available premises and pursuing sustainable business opportunities.

Management remains cautious about risks arising from domestic political conditions, inflation, geopolitical tensions and energy prices. These factors could influence operating costs and the wider business environment.

The board has not recommended a dividend for FY2026, indicating that the company’s immediate priority remains strengthening its financial position and maintaining business stability.

Conclusion

ICC Industries Limited’s return to profitability marks a positive development following several years of losses. Higher warehousing revenue, improved use of its property assets and lower administrative expenses helped the company deliver stronger results in FY2026.

Nevertheless, substantial accumulated losses and pressure on short-term liquidity remain important concerns. The company’s ability to sustain profitability, improve its working-capital position and manage liabilities will be crucial to its longer-term recovery.