National Silk and Rayon Mills Posts 86% Surge in Nine-Month Profit, EPS Climbs to Rs3.09

National Silk and Rayon Mills Limited (PSX: NSRM) has reported a strong financial performance for the nine months ended March 31, 2026, posting a significant increase in profitability driven by improved operational efficiency and higher gross margins.

According to the company’s condensed interim financial statements, net profit after tax rose to Rs48.07 million, compared to Rs25.78 million in the corresponding period last year, representing an increase of approximately 86%. Consequently, earnings per share (EPS) improved to Rs3.09, up from Rs1.66 a year earlier.

The company generated revenue of Rs1.84 billion during the nine-month period, slightly lower than Rs1.95 billion recorded in the same period last year. Despite the modest decline in sales, the cost of services provided fell at a faster pace, allowing gross profit to increase to Rs131.23 million from Rs100.70 million.

Operating performance also strengthened during the period. Profit from operations climbed to Rs80.43 million, compared with Rs57.51 million in the corresponding period of the previous year. The company also recorded other income of Rs7.81 million, which further supported overall earnings.

Although administrative expenses increased year-on-year, lower finance costs and improved operating margins helped lift profit before taxation to Rs72.39 million, compared with Rs37.93 million in the same period last year. After accounting for taxation, the company successfully delivered a robust increase in net earnings.

On the balance sheet, total assets increased to Rs2.28 billion as of March 31, 2026, while shareholders’ equity strengthened to Rs1.60 billion, reflecting the accumulation of higher retained earnings during the period.

The latest results indicate that National Silk and Rayon Mills has significantly improved its profitability despite softer revenues, highlighting effective cost management and stronger operational performance. The higher EPS and improved financial position are likely to be viewed positively by investors monitoring the textile sector.