Khalid Siraj Textile Mills Limited has reported a reduction in its net loss for the nine-month period ended March 31, 2026, although the company continued to face a challenging operating environment with no sales recorded during the period.
According to the financial statements approved by the company’s Board of Directors on April 22, 2026, Khalid Siraj Textile Mills posted a loss after taxation of Rs12.78 million during the nine months ended March 31, 2026, compared with a loss of Rs14.06 million in the corresponding period of the previous year.
Loss position improves
The company’s financial performance showed some improvement on a year-on-year basis. The nine-month loss before taxation stood at Rs16.34 million, compared with Rs18.01 million in the same period of 2025.
Administrative and general expenses declined to Rs1.97 million from Rs2.07 million, while other operating expenses fell to Rs14.36 million from Rs15.94 million. Finance costs amounted to Rs4,714 during the period.
However, the company reported nil sales for both the nine-month period ended March 31, 2026, and the comparable period. This indicates that the reduction in losses was primarily associated with lower operating expenses rather than an improvement in revenue generation.
Quarterly loss also narrows
For the January-March 2026 quarter, the company recorded a loss after taxation of Rs4.06 million, compared with Rs4.90 million in the same quarter last year.
Quarterly administrative and general expenses decreased to Rs456,343 from Rs908,264, while other operating expenses stood at Rs4.79 million against Rs5.31 million previously. The quarterly loss per share improved to Rs0.38 from Rs0.46.
Equity remains under pressure
The company’s financial position continues to reflect accumulated losses. As of March 31, 2026, total equity stood at a negative Rs90.03 million, compared with negative Rs77.24 million as of June 30, 2025.
Property, plant and equipment were valued at Rs278.76 million, while cash and bank balances stood at only Rs65,922 at the reporting date. The company had long-term finances of Rs154.10 million and short-term borrowings of Rs68.18 million.
Operating cash outflow improves
The cash flow statement showed a significant improvement in operating cash usage. Net cash used in operating activities declined to Rs150,540 during the nine-month period, compared with Rs3.87 million in the corresponding period of 2025.
The company also made Rs200,000 in repayments of long-term finances during the period. Cash and cash equivalents increased from Rs16,463 at the beginning of the period to approximately Rs65,923 at March 31, 2026.
No dividend or other entitlement
The company announced no cash dividend, bonus shares or right shares for the period. It also reported no other corporate action or price-sensitive information in its filing.
Overall, Khalid Siraj Textile Mills managed to reduce its losses during the nine months ended March 2026, supported by lower operating expenses and reduced cash consumption. However, the absence of sales remains a major concern, while negative equity and continued financing obligations highlight the financial challenges facing the company.
