KARACHI: Ideal Spinning Mills Limited has announced its financial results for the third quarter ended March 31, 2026, showing a notable improvement in profitability despite remaining in the red on a cumulative basis. The company’s board approved the unaudited financial statements in its meeting held on April 30, 2026. No cash dividend, bonus shares, right shares, or any other corporate action were announced.

During the third quarter of FY2026, the textile manufacturer reported a net loss after tax of Rs63.4 million, a significant improvement compared to the Rs267.0 million loss recorded in the corresponding period last year. The improvement was driven by stronger gross margins and a reduction in finance costs.

Revenue from contracts with customers declined to Rs923.4 million during the quarter from Rs1.18 billion a year earlier. However, lower cost of sales helped the company increase its gross profit to Rs185.1 million, almost double the Rs95.0 million reported in the same quarter of FY2025.

The company’s loss from continuing operations narrowed considerably to Rs22.2 million, compared with Rs112.2 million in the corresponding period last year. Meanwhile, discontinued operations posted a loss of Rs41.2 million, bringing the total quarterly loss after tax to Rs63.4 million.

On a per-share basis, the company reported a loss of Rs2.24 per share from continuing operations versus Rs11.31 per share a year earlier. Loss per share from discontinued operations stood at Rs4.16, compared with Rs15.61 in the corresponding quarter of FY2025.

The balance sheet reflects total assets of approximately Rs2.36 billion as of March 31, 2026, while shareholders’ equity remained positive at around Rs119.7 million despite accumulated losses. Cash and cash equivalents increased to Rs54.5 million, supported primarily by proceeds from the sale of non-current assets held for sale, which strengthened the company’s liquidity position during the period.

Although Ideal Spinning Mills continues to face operational challenges, the latest quarterly results indicate meaningful progress in reducing losses and improving operating efficiency. Investors will be closely watching whether the company can sustain this recovery and return to profitability in the coming quarters.