Janana De Malucho Textile Mills Limited (JDM) has reported a challenging financial performance for the nine-month period ended March 31, 2026, with the company posting a significant net loss amid lower sales and continued pressure from operating and finance costs.
According to the company’s financial results, JDM recorded net sales of Rs195.62 million during the nine months under review, compared with Rs1.485 billion in the corresponding period of the previous year. The sharp decline in revenue was accompanied by a gross loss of Rs134.60 million, compared with a gross loss of Rs385.43 million a year earlier.
Losses remain significant
The company’s loss from operations stood at Rs123.15 million for the nine-month period, while finance costs amounted to Rs105.53 million. After accounting for these costs, JDM reported a loss before tax of Rs220.02 million.
The company also recorded minimum tax and levy of Rs2.45 million and deferred income tax expense of Rs16.18 million. As a result, loss for the period reached Rs206.28 million, compared with a loss of Rs595.12 million in the same period last year.
The company reported a loss per share of Rs29.8 for the nine months ended March 31, 2026, against a loss per share of Rs86.1 in the corresponding period.
Quarterly performance also remains under pressure
For the quarter ended March 31, 2026, JDM posted net sales of Rs181.36 million, down from Rs289.83 million in the same quarter of 2025.
The company reported a quarterly gross loss of Rs24.11 million, while its loss from operations stood at Rs41.49 million. Finance costs amounted to Rs31.90 million, taking the quarterly loss before tax to Rs73.39 million.
After taxes, the company posted a quarterly loss of Rs75.65 million, compared with a loss of Rs145.36 million in the corresponding quarter of the previous year.
Balance sheet position
JDM’s total assets stood at approximately Rs7.31 billion as of March 31, 2026, compared with Rs7.39 billion as of June 30, 2025.
Shareholders’ equity declined to Rs5.09 billion from Rs5.28 billion at the end of June 2025, reflecting the impact of the accumulated losses during the period. The company had total liabilities of approximately Rs2.22 billion at March 31, 2026.
Operating cash flow improves
Despite the reported accounting losses, the company generated positive cash flow from operations during the nine months. Net cash generated from operating activities amounted to Rs227.97 million, compared with Rs63.69 million in the same period last year.
JDM also recorded Rs54.42 million in net cash generated from investing activities, mainly reflecting proceeds from the sale of operating fixed assets. Financing activities resulted in a net cash outflow of Rs179.44 million.
As a result, cash and cash equivalents increased from Rs7.92 million at June 30, 2025 to Rs110.87 million at March 31, 2026.
No dividend or other corporate action announced
The company’s board, in its meeting held on April 15, 2026, announced no cash dividend, bonus shares, right shares or other entitlement/corporate action alongside the financial results. The quarterly report for the period ended March 31, 2026 was to be transmitted separately through PUCARS.
Outlook
The latest results highlight the difficult financial position facing Janana De Malucho Textile Mills, particularly the substantial decline in sales compared with the previous year. At the same time, the improvement in operating cash generation and the increase in cash balances provide an important counterpoint to the reported accounting losses.
Going forward, the company’s ability to improve sales, manage production and operating costs, and reduce the burden of finance costs will remain important factors for its financial performance.
