LAHORE: Prosperity Weaving Mills Limited (PSX: PRWM) posted a strong improvement in profitability for the nine months ended March 31, 2026, with net profit nearly doubling despite a decline in sales, reflecting improved operational efficiency and lower finance costs.

According to the company’s unaudited financial results, net profit after tax rose to Rs192.51 million, compared with Rs103.51 million in the corresponding period last year. Earnings per share (EPS) increased to Rs10.42, up from Rs5.60 a year earlier.

The textile manufacturer reported revenue of Rs13.26 billion, down from Rs14.23 billion in the same period of the previous year. However, the decline in sales did not prevent the company from improving its profitability, as gross profit climbed to Rs1.01 billion from Rs926.49 million, driven by better cost management and improved margins.

Operating profit also recorded a healthy increase, reaching Rs601.09 million, compared with Rs488.99 million in the corresponding period last year. Meanwhile, finance costs declined significantly to Rs139.36 million from Rs206.76 million, providing additional support to the company’s bottom line.

For the third quarter alone, Prosperity Weaving Mills posted a profit after tax of Rs72.71 million, compared with Rs53.86 million in the same quarter of last year, highlighting continued earnings momentum during the period.

On the balance sheet, the company’s total assets increased to Rs7.36 billion as of March 31, 2026, from Rs7.10 billion at the end of June 2025. Shareholders’ equity also strengthened to Rs2.59 billion, reflecting higher retained earnings generated during the period.

Cash flow from operating activities remained robust, with the company generating Rs956.29 million in net operating cash during the nine-month period. Prosperity Weaving Mills also invested heavily in expanding its production capacity, spending approximately Rs783.68 million on property, plant and equipment.

The company maintained its shareholder returns by distributing a final cash dividend of 25% (Rs2.50 per share) for the financial year ended June 30, 2025, during the reporting period.

The latest financial performance indicates that Prosperity Weaving Mills has successfully offset weaker sales with stronger operational efficiency, disciplined cost control, and reduced financing expenses, positioning the company for improved financial stability despite ongoing challenges facing Pakistan’s textile sector.