ICC Industries Limited, formerly known as ICC Textiles Limited, has reported a profit after tax of Rs1.654 million for the first quarter ended September 30, 2026, compared with Rs1.768 million in the corresponding period last year.

According to the company’s unaudited financial results, revenue increased by approximately 19% to Rs18.850 million during July-September 2026, compared with Rs15.830 million in the same quarter of the previous year. Despite higher revenue, earnings per share remained unchanged at Rs0.06.

Improved Revenue Through Warehousing Operations

The increase in revenue was primarily driven by better utilization of the company’s available covered space for warehousing purposes. ICC Industries successfully utilized almost the entire covered area of its mill premises, generating improved rental and warehousing income.

Warehousing income from the factory building increased to Rs15.462 million from Rs12.754 million in the corresponding quarter last year. Meanwhile, rental income from the residential building reached Rs3.388 million, compared with Rs3.076 million previously.

Gross profit improved slightly to Rs11.052 million from Rs10.922 million in the same period last year. However, direct costs increased to Rs7.798 million from Rs4.908 million, mainly due to a significant rise in depreciation expenses.

Economic Challenges Remain a Concern

In its directors’ report, the company highlighted several economic challenges affecting the overall business environment. Although some macroeconomic indicators have improved, including foreign exchange reserves and relative stability in exchange and interest rates, the business environment remains difficult.

Persistent political uncertainty, inflationary pressures, fluctuations in international energy markets due to regional geopolitical tensions, and the high tax burden continue to affect business activities and operating costs.

The company’s management stated that it would closely monitor economic developments while focusing on maintaining stable income from its warehousing operations.

Financial Position and Outlook

The company’s total assets stood at approximately Rs1.251 billion as of September 30, 2026, compared with Rs1.251 billion at the end of June 2026. Cash and bank balances amounted to Rs18.713 million.

Net cash generated from operating activities reached Rs151,300 during the quarter, compared with a net cash outflow of Rs765,195 in the corresponding period last year.

ICC Industries also reported accumulated losses of Rs761.933 million, while unsecured interest-free directors’ loans remained unchanged at Rs761.328 million.

Going forward, the company’s financial performance will largely depend on its ability to maintain high utilization of available warehousing space and generate stable rental income amid prevailing economic uncertainties.

The first-quarter results reflect improved revenue generation and slightly higher gross profit, although increased operating costs and taxation affected the company’s bottom-line performance.

The financial statements were approved by the Board of Directors on October 29, 2026.