Saif Textile Mills Makes Strong Turnaround, Posts Rs224.7 Million Profit in FY2026

Saif Textile Mills Limited delivered a significant improvement in financial performance during the year ended June 30, 2026, moving back into profitability after recording a substantial loss in the previous year. The company’s latest financial statements show that improved gross profitability, stronger operating performance and a notable reduction in finance costs helped drive the turnaround.

According to the financial statements, Saif Textile Mills recorded net sales of Rs11.71 billion during FY2026, compared with Rs11.59 billion in FY2025. While the increase in sales was relatively modest, the company achieved a much stronger result at the gross-profit level. Gross profit rose to Rs1.62 billion, compared with Rs1.23 billion a year earlier. 284036

Profitability improves sharply

The improvement in gross profit translated into stronger operating performance. Profit from operations increased to Rs1.14 billion in FY2026 from Rs832.3 million in FY2025.

One of the most important factors behind the turnaround was the decline in finance costs. Finance cost fell to approximately Rs897.4 million, compared with Rs1.25 billion in the previous year. This helped the company move from a pre-tax loss of Rs419.0 million in FY2025 to a pre-tax profit of Rs241.7 million in FY2026. 284036

After taxation, Saif Textile Mills reported a profit of Rs224.7 million, compared with a loss of Rs388.3 million in FY2025. Earnings per share also recovered significantly, rising to Rs8.51 per share from a loss of Rs14.70 per share in the previous year. 284036

Stronger comprehensive income

The company’s overall financial position also benefited from other comprehensive income. Total comprehensive income for FY2026 reached Rs460.85 million, compared with a comprehensive loss of Rs401.34 million in FY2025. The improvement included a surplus arising from the revaluation of property, plant and equipment, although the company also recorded a loss on the remeasurement of staff retirement benefit obligations. 284036

As a result, shareholders’ equity increased to approximately Rs4.21 billion at June 30, 2026, from Rs3.75 billion a year earlier. Unappropriated profit also increased to Rs1.19 billion from Rs841.95 million. 284036

Operating cash flow remains healthy

The company’s cash-flow position provides another positive aspect of the FY2026 results. Saif Textile Mills generated Rs1.14 billion in net cash from operating activities, up from Rs1.02 billion in FY2025. Cash generated from operations before taxes and other adjustments stood at Rs1.38 billion. 284036

However, the company invested significantly during the year. Additions to property, plant and equipment amounted to Rs756.5 million, resulting in net cash used in investing activities of Rs587.9 million. The company also obtained Rs1.30 billion in long-term financing during FY2026. 284036

Despite generating strong operating cash flow, cash and cash equivalents at year-end declined to Rs11.0 million, compared with Rs33.4 million at June 30, 2025. This reflects the company’s investment and financing activities during the year. 284036

Assets and financial position expand

Saif Textile Mills’ total assets increased to approximately Rs15.32 billion at June 30, 2026, from Rs14.32 billion a year earlier. Property, plant and equipment rose to Rs8.15 billion, while stock-in-trade increased to about Rs3.14 billion. Trade debts also stood at approximately Rs3.28 billion. 284036

At the same time, the company’s long-term financing increased substantially, reaching Rs2.06 billion compared with Rs967.4 million in the previous year. Short-term borrowings, however, declined to approximately Rs5.49 billion from Rs6.04 billion. 284036

A notable turnaround for the textile company

Overall, FY2026 represents a considerably stronger year for Saif Textile Mills. The company managed to increase sales modestly while achieving a much larger improvement in gross profit and operating earnings. Most importantly, the sharp reduction in finance costs helped the company transition from a sizeable loss in FY2025 to a healthy profit in FY2026.

The results suggest that cost management, improved operating profitability and lower financial charges played important roles in the turnaround. With higher shareholders’ equity, stronger operating cash generation and continued investment in property, plant and equipment, Saif Textile Mills enters the new financial year from a stronger position than it held a year earlier.