Nagina Cotton Mills Delivers Sharp Improvement in Profitability in FY2026

Nagina Cotton Mills Limited reported a significant improvement in its financial performance for the year ended June 30, 2026, with the company’s bottom-line earnings rising substantially compared with the previous year.

According to the company’s financial statements, revenue from contracts with customers increased to Rs21.56 billion in FY2026 from Rs19.86 billion a year earlier. This represents growth of approximately 8.6%, reflecting higher overall business activity during the year. 283772

The company’s gross profit also improved, reaching Rs1.81 billion, compared with Rs1.69 billion in FY2025. Despite higher distribution and administrative expenses, Nagina Cotton Mills generated an operating profit of Rs1.22 billion, up from Rs1.16 billion in the previous year.

One of the major improvements came at the bottom line. Profit after tax surged to Rs281.6 million in FY2026, compared with just Rs50.4 million in FY2025. This translates into an increase of more than five times year on year. Earnings per share similarly jumped to Rs15.06 from Rs2.70. 283772

Lower Finance Costs Support Earnings

The company also benefited from a reduction in finance costs. Finance expenses declined to approximately Rs582.5 million during FY2026 from Rs721.4 million in FY2025. However, profit before taxation remained broadly stable at Rs434.0 million, compared with Rs442.3 million in the preceding year, before the substantially lower tax burden helped lift net earnings. 283772

The financial statements show taxation of approximately Rs152.4 million for FY2026, compared with Rs181.3 million in FY2025. As a result, the company reported a substantial improvement in profit attributable to the year.

Stronger Operating Cash Flow

Nagina Cotton Mills also recorded a notable turnaround in cash generation from operations. Net cash generated from operating activities stood at approximately Rs2.99 billion in FY2026, compared with a net cash outflow of around Rs2.61 billion in FY2025. 283772

The improvement in operating cash flow represents an important development for the company, particularly as it provides greater internal liquidity to support working capital requirements and other financial commitments.

Balance Sheet Remains Substantial

At June 30, 2026, Nagina Cotton Mills reported total assets of approximately Rs13.56 billion, compared with Rs14.60 billion a year earlier. Current assets stood at Rs7.80 billion, while non-current assets amounted to approximately Rs5.76 billion. 283772

Total equity increased to approximately Rs5.02 billion, compared with Rs4.76 billion at the end of FY2025. Meanwhile, total liabilities declined to around Rs8.54 billion from Rs9.84 billion, indicating a reduction in the company’s overall liability position. 283772

The company ended FY2026 with cash and bank balances of approximately Rs535.0 million, compared with Rs107.1 million a year earlier. After accounting for other financial assets and short-term running finance, cash and cash equivalents at year-end stood at approximately Rs324.4 million. 283772

Outlook

Nagina Cotton Mills’ FY2026 results highlight a considerable improvement in profitability and cash generation. While revenue and gross profit recorded moderate growth, the sharp increase in net earnings was supported by lower finance costs, reduced taxation and improved operating cash flows.

The company’s stronger equity position, improved liquidity and significant rise in earnings per share provide a more positive financial picture at the close of FY2026. Going forward, the company’s performance will continue to depend on revenue growth, cost management, financing expenses and broader conditions in the textile and cotton industry.

Source: Nagina Cotton Mills Limited financial statements for the year ended June 30, 2026. 283772