Quetta Textile Mills Limited has reported a significant improvement in its financial performance for the year ended June 30, 2026, reducing its annual loss by approximately 47% compared with the previous financial year. The company’s latest financial statements indicate progress in controlling losses, although it continues to face financial challenges.

According to the financial statements, the company’s sales increased to Rs1.48 billion during FY2026, compared with Rs1.06 billion in the previous year, representing growth of approximately 39%. This increase in revenue reflects an improvement in business activity during the reporting period.

Despite higher sales, the company continued to face substantial pressure from its cost of sales, which increased to approximately Rs2.30 billion from Rs2.27 billion in FY2025. As a result, Quetta Textile Mills recorded a gross loss of Rs826.69 million, compared with Rs1.21 billion in the preceding year.

The company’s overall operating performance also showed improvement. Its loss from operations narrowed to Rs846.15 million, against Rs1.62 billion in FY2025. Lower administrative and other operating expenses, together with higher other income, contributed to the reduction in operating losses.

Finance costs also declined significantly to Rs3.29 million from Rs7.08 million in the previous financial year, providing some relief to the company’s financial position.

Consequently, the company’s loss before taxation decreased to Rs849.44 million from Rs1.62 billion. After accounting for taxation of Rs18.45 million, the net loss stood at Rs867.89 million, compared with Rs1.64 billion in FY2025.

The company’s loss per share also improved to Rs66.76 from Rs125.90, indicating a reduction in losses attributable to shareholders.

Balance Sheet Shows Changes in Financial Position

The company’s balance sheet as of June 30, 2026, showed total assets of approximately Rs12.72 billion, compared with Rs14.18 billion a year earlier.

Property, plant and equipment remained the company’s largest asset category, amounting to Rs9.70 billion. However, stock in trade declined to Rs1.28 billion from Rs2.56 billion in the previous year.

On the liabilities side, current liabilities stood at approximately Rs11.44 billion, highlighting continued pressure on the company’s short-term financial position.

Total equity declined to approximately Rs533.60 million from Rs1.41 billion in FY2025, primarily reflecting the accumulated losses recorded during the year.

Cash Flow Position Improves

The cash flow statement also reflected some positive developments. Quetta Textile Mills generated net cash of approximately Rs1.29 million from operating activities during FY2026, compared with cash outflows of Rs35.84 million in the previous year.

Net cash generated from investing activities amounted to Rs34.73 million, while financing activities resulted in a net cash outflow of Rs34.47 million.

Cash and cash equivalents increased to Rs9.91 million at the end of June 2026, compared with Rs8.35 million at the end of the previous financial year.

Outlook

Quetta Textile Mills’ FY2026 results demonstrate a notable reduction in annual losses alongside stronger sales and improved operating cash flow. However, the company continues to face challenges, particularly its substantial cost of sales, accumulated losses and high current liabilities.

The improvement in financial performance represents a positive development, but restoring profitability will require better cost management, improved production efficiency and stronger financial discipline.

Investors will likely monitor the company’s ability to convert revenue growth into sustainable profits and strengthen its balance sheet in the coming financial periods.