Kohinoor Mills Limited reported a decline in profitability for the nine months ended March 31, 2026, as lower revenue and higher operating pressures weighed on the company’s bottom line.
According to the company’s financial results, revenue for the nine-month period stood at Rs19.59 billion, compared with Rs21.08 billion in the same period last year, representing a decline of around 7.1%.
Despite the reduction in revenue, the company managed to improve its gross profit. Gross profit increased to approximately Rs2.93 billion from Rs2.84 billion, indicating that gross margins remained relatively resilient during the period.
However, operating expenses continued to put pressure on overall profitability. Distribution costs declined slightly to around Rs1.06 billion, while administrative expenses increased to approximately Rs733.0 million from Rs569.9 million a year earlier. Other expenses also remained significant.
As a result, profit from operations fell to Rs1.17 billion, compared with approximately Rs1.32 billion in the corresponding period of the previous year.
Finance costs, meanwhile, declined to around Rs801.4 million from Rs932.0 million, providing some relief at the pre-tax level. Nevertheless, profit before taxation decreased to approximately Rs116.2 million, compared with Rs159.7 million in the same period last year.
After taxation, Kohinoor Mills posted a profit of Rs149.16 million, down from Rs200.39 million a year earlier. This represents a year-on-year decline of roughly 25.6%. Earnings per share also decreased to Rs0.29 from Rs0.39.
Third-Quarter Performance
The company’s performance during the third quarter was comparatively weaker. Quarterly revenue stood at approximately Rs5.52 billion, down from Rs5.67 billion in the same quarter last year.
Quarterly profit after taxation fell sharply to Rs12.84 million, compared with Rs29.15 million in the corresponding quarter of 2025. Earnings per share for the quarter stood at Rs0.03, against Rs0.06 previously.
The figures indicate that although Kohinoor Mills maintained its gross profitability, pressure below the gross-profit line limited the conversion of sales into earnings.
Cash Flow and Financial Position
The company also reported significant investment spending during the nine-month period. Cash used in investing activities amounted to approximately Rs1.13 billion, largely reflecting capital expenditure on property, plant and equipment.
Cash and cash equivalents declined from approximately Rs586.6 million at the end of March 2025 to Rs441.6 million at March 31, 2026.
The company’s board, in its April 23, 2026 meeting, recommended no cash dividend, bonus shares or right shares for the period.
Overall, Kohinoor Mills’ nine-month results show a mixed picture: the company maintained a healthy gross-profit position and reduced finance costs, but weaker revenue and operating profitability ultimately resulted in a substantial decline in net earnings.
