Redco Textiles Limited has reported a solid financial performance for the nine months ended March 31, 2026, posting a net profit of Rs159.94 million, reflecting a 22.9% increase compared to Rs130.08 million earned during the corresponding period last year. The company’s improved earnings were driven by stronger gross margins and higher sales despite a challenging operating environment.

According to the financial results, net sales increased to Rs1.472 billion during the nine-month period, up from Rs1.113 billion in the same period of the previous year. At the same time, the company significantly improved its gross profitability, with gross profit rising to Rs286.23 million compared with Rs157.97 million a year earlier.

Operating profit also showed remarkable growth, climbing to Rs251.02 million from Rs133.79 million in the corresponding period last year. Although operating expenses increased due to higher administrative and other operating costs, the company maintained healthy profitability through improved operational efficiency and stronger revenue generation.

After accounting for finance costs, levies, and taxation, profit after tax reached Rs159.94 million, translating into earnings per share (EPS) of Rs3.245, compared with EPS of Rs2.639 reported in the same period last year.

The company’s financial position also strengthened during the period. Total assets increased to Rs4.373 billion as of March 31, 2026, compared with Rs4.095 billion at the end of June 2025. Meanwhile, accumulated losses narrowed significantly from Rs240.03 million to Rs63.90 million, reflecting the impact of improved profitability on shareholders’ equity.

On the cash flow front, Redco Textiles generated Rs721.62 million in net cash from operating activities, a substantial turnaround from the net cash outflow recorded during the same period last year. The company also invested significantly in property, plant, and equipment, underscoring its focus on expanding operational capacity and supporting future growth.

The Board of Directors did not recommend any cash dividend, bonus shares, right shares, or other corporate actions along with the financial results for the nine-month period.