Prosperity Weaving Mills Limited reported a significant improvement in profitability for the financial year ended June 30, 2026, with profit after taxation rising sharply compared with the previous year.
According to the company’s financial statements, revenue from contracts with customers increased to Rs17.64 billion in FY2026 from Rs18.19 billion a year earlier. Despite the modest decline in revenue, the company generated a higher gross profit of Rs1.31 billion, compared with Rs1.19 billion in FY2025. 283769
Profitability Shows Strong Improvement
Prosperity Weaving Mills recorded an operating profit of Rs749.72 million during FY2026, compared with Rs617.85 million in the preceding year. Finance costs also declined substantially to Rs183.31 million, from Rs256.19 million, providing further support to the company’s bottom line.
Profit before income tax increased to Rs480.93 million, compared with Rs338.58 million in FY2025. After taxation, the company posted profit after tax of Rs261.67 million, a major increase from Rs91.12 million a year earlier.
The improvement was also reflected in earnings per share, which rose to Rs14.16 from Rs4.93 in FY2025. 283769
Balance Sheet Strengthens
The company’s total assets increased to Rs8.04 billion as of June 30, 2026, compared with Rs7.10 billion at the end of the previous financial year. Property, plant and equipment rose to approximately Rs3.68 billion, indicating continued investment in the company’s operating assets.
Total equity also improved to Rs2.68 billion, up from Rs2.41 billion in FY2025. However, total liabilities increased to Rs5.36 billion from Rs4.69 billion, highlighting the company’s continued reliance on external financing. 283769
Cash Flow Remains an Area to Watch
Prosperity Weaving Mills generated Rs996.32 million in net cash from operating activities during FY2026, compared with Rs505.28 million in the previous year. This represents a substantial improvement in cash generation from core operations.
At the same time, the company invested heavily during the year, with net cash used in investing activities reaching approximately Rs1.06 billion. Financing activities also resulted in a net cash outflow of about Rs522.56 million.
As a result, cash and cash equivalents decreased during the year, with the company reporting cash and bank balances of Rs267.72 million and running finance of approximately Rs809.02 million at year-end. 283769
Outlook
The FY2026 results show a notable improvement in Prosperity Weaving Mills’ earnings despite lower revenue. Higher gross and operating profits, lower finance costs and stronger operating cash generation contributed to the substantial rise in profitability.
The company’s financial position also expanded during the year, while its investment in property, plant and equipment suggests continued focus on its operating capacity. Going forward, maintaining margins, managing financing requirements and converting operating profits into sustainable cash flows will remain important factors for the company.
Overall, Prosperity Weaving Mills closed FY2026 with markedly stronger profitability and earnings per share, giving shareholders a considerably better financial performance than the previous year.
