Khyber Textile Mills Limited reported a challenging financial year ended June 30, 2026, with the company’s net loss widening despite an increase in sales and operating cash generation.
According to the financial statements, the company recorded sales of Rs22.787 million during FY2026, compared with Rs20.684 million in the previous year. Gross profit also improved to Rs7.154 million from Rs5.975 million.
However, higher administrative expenses continued to weigh on the company’s bottom line. Administrative expenses stood at Rs13.996 million, while the company also recorded financial expenses of Rs2,059. As a result, Khyber Textile Mills posted a loss before taxation of Rs5.858 million, compared with a loss of Rs7.104 million in FY2025.
After accounting for current and deferred taxation, the company reported a net loss of Rs7.851 million, compared with a net loss of Rs5.825 million in the previous year. The loss per share consequently increased to Rs6.40, compared with Rs4.75 a year earlier.
Asset Position Remains Relatively Stable
The company’s total assets stood at approximately Rs1.292 billion as of June 30, 2026, slightly below Rs1.301 billion recorded a year earlier. Property, plant and equipment remained the largest component of the balance sheet at Rs1.270 billion.
Cash and bank balances, meanwhile, increased to Rs19.465 million from Rs17.051 million in FY2025, providing some improvement in the company’s liquidity position.
The balance sheet also shows accumulated losses of Rs5.332 million at the end of FY2026, compared with Rs6.560 million in the preceding year.
Operating Cash Flow Improves
Despite the reported net loss, Khyber Textile Mills generated positive cash from operating activities. Net cash generated from operating activities rose to Rs4.763 million, compared with Rs4.328 million in FY2025.
The cash flow statement shows operating profit before working capital changes of Rs6.040 million, supported in part by depreciation of Rs11.896 million.
The company invested Rs1.262 million in a solar power system during FY2026, in addition to Rs27,000 spent on bearer plants. Total net cash used in investing activities amounted to Rs1.289 million.
Financing activities resulted in a cash outflow of Rs1.060 million, relating to loans from directors.
Financial Position at Year-End
Khyber Textile Mills ended FY2026 with cash and cash equivalents of Rs19.465 million, compared with Rs17.051 million at the end of FY2025. Overall, cash and cash equivalents increased by Rs2.414 million during the year.
The company’s financial statements indicate that while sales and operating cash generation improved, the business continued to face pressure from its expense structure and taxation, resulting in a higher annual net loss. The addition of a solar power system also represents an investment recorded during the year, while the company maintained a relatively stable asset base.
