Mahmood Textile Mills Limited has reported an improvement in its consolidated financial performance for the fiscal year ended June 30, 2026, with higher sales, gross profit and net earnings compared with the previous year. The company’s latest financial statements reflect growth in revenue and operating profit, while finance costs and taxation-related expenses continued to affect its overall profitability.

Revenue Increases to Rs69.73 Billion

According to the company’s consolidated financial statements, Mahmood Textile Mills recorded sales of Rs69.73 billion in FY2026, compared with Rs57.07 billion in the previous fiscal year. This represents an increase of approximately 22.2%, indicating stronger revenue generation during the year.

The cost of sales rose to Rs60.87 billion from Rs49.11 billion. Despite higher production costs, gross profit increased to Rs8.86 billion from Rs7.96 billion, reflecting an improvement in the company’s gross profitability.

Operating Profit Shows Growth

The company’s operating profit increased to Rs5.81 billion in FY2026, compared with Rs5.23 billion in FY2025. The improvement came alongside higher sales and gross profit, although operating expenses also increased during the reporting period.

Distribution costs reached Rs1.44 billion, while administrative expenses amounted to Rs1.61 billion. Together, these expenses rose to approximately Rs3.05 billion from Rs2.74 billion in the previous year.

Net Profit Rises to Rs1.06 Billion

Mahmood Textile Mills reported consolidated net profit of Rs1.06 billion for FY2026, compared with Rs978.02 million in FY2025. This represents an increase of approximately 8%, demonstrating that the company maintained earnings growth despite continued pressure from financing and other expenses.

Earnings per share also improved to Rs35.20 from Rs32.60, according to the consolidated profit and loss statement.

Finance costs remained substantial at Rs4.03 billion, although they were lower than the Rs4.11 billion recorded in the previous fiscal year. The company reported profit before levy and taxation of Rs2.03 billion, compared with Rs1.53 billion a year earlier.

Cash Flow Position Improves

The company’s consolidated cash flow statement showed a notable improvement in operating cash generation. Net cash generated from operating activities reached Rs676.85 million in FY2026, compared with a net outflow of Rs1.53 billion in FY2025.

The company also continued to invest in its operations, with payments for property, plant and equipment amounting to approximately Rs1.55 billion. Net cash used in investing activities stood at Rs1.41 billion.

Cash and cash equivalents increased to Rs197.99 million at the end of FY2026, compared with Rs98.42 million a year earlier.

Financial Position and Outlook

Mahmood Textile Mills’ consolidated total assets increased to Rs59.74 billion as of June 30, 2026, from Rs57.35 billion in the previous year. Shareholders’ equity rose to Rs19.51 billion from Rs18.45 billion, reflecting the addition of retained earnings and other movements in equity.

The results highlight improved revenue generation, operating profitability and cash flow during the year. However, financing costs, operating expenses and the company’s investment requirements remain important factors influencing future earnings.

Going forward, the company’s financial performance will depend on its ability to sustain sales growth, manage production costs, control financing expenses and maintain operational efficiency amid changing market conditions.