Shadman Cotton Mills Limited Reports Rs 30.82 Million Profit for FY2026 Amid Challenging Textile Market
Shadman Cotton Mills Limited has reported a significant improvement in its financial performance for the fiscal year ended June 30, 2026, returning to profitability after recording a loss in the previous year. According to the company’s 47th Annual Report, net turnover increased by 44.64%, while profit after taxation reached Rs 30.82 million, reflecting a notable recovery in its business operations.
Revenue Growth Highlights Business Recovery
The company’s net turnover rose to Rs 737.63 million in FY2026, compared with Rs 509.96 million in FY2025. This improvement was attributed primarily to the performance of its apparel division and alternative business activities.
Shadman Cotton Mills also reported a gross profit of Rs 2.36 million, reversing a gross loss of Rs 19.67 million in the preceding financial year. Operating profit increased to Rs 72.03 million from Rs 13.92 million, indicating a substantial improvement at the operating level.
Profit before levies and taxation stood at Rs 3.40 million, compared with a loss of Rs 28.93 million in FY2025. After levies and taxation, the company recorded a profit of Rs 30.82 million against a loss of Rs 16.57 million a year earlier.
Earnings Per Share Improve
The company’s return to profitability was also reflected in its earnings per share. Shadman Cotton Mills reported earnings of Rs 1.75 per share for FY2026, compared with a loss of Rs 0.94 per share in the previous year.
The break-up value of the company’s shares increased to Rs 49.38 as of June 30, 2026, from Rs 45.48 a year earlier. These figures indicate an improvement in the company’s reported financial position, although its future performance will depend on maintaining profitability and managing costs.
Textile Industry Continues to Face Cost Pressures
Despite the improved results, the company acknowledged that the textile sector continues to operate in a difficult business environment. Rising raw material prices, electricity costs and other manufacturing expenses have placed pressure on industrial operators.
The company also highlighted intense competition in international markets, which has contributed to lower profit margins across the industry. Changes in government tax policies have created additional challenges for manufacturers trying to maintain competitive product prices.
These factors remain important considerations for Shadman Cotton Mills as it seeks to sustain its recovery in the coming financial year.
Management Focuses on Working Capital and Diversification
Looking ahead, the company’s management plans to continue supporting working capital requirements through interest-free loans from directors. This support is intended to help the business manage its operational funding needs.
Management is also planning to invest additional funds in alternative business opportunities during the next financial year, with the aim of generating further profits. The contribution of these initiatives to future earnings will depend on their implementation and commercial performance.
The annual report also highlights the company’s efforts in energy conservation, workplace safety, environmental improvement and employee welfare. These initiatives form part of its broader approach to maintaining operational efficiency and responsible business practices.
No Dividend Recommended for FY2026
Despite returning to profitability, the board has not recommended a dividend for the year ended June 30, 2026, citing the company’s weak financial position.
This decision indicates that the company continues to face financial considerations that may require management to prioritize operational requirements and balance-sheet stability over shareholder distributions.
Annual General Meeting Scheduled for October 28
Shadman Cotton Mills has scheduled its 47th Annual General Meeting for October 28, 2026, at 10:30 a.m. at its registered office near Chandi Kot, Nankana Sahib. Shareholders will be asked to consider the audited financial statements for FY2026 and other matters outlined in the meeting notice.
One of the proposed resolutions seeks approval to lease or rent out vacant buildings classified as investment property. The company reported a net book value of Rs 103.22 million for this investment property as of June 30, 2026. Renting out vacant portions could provide an additional source of income, subject to the terms and conditions of future agreements.
Outlook: Sustaining the Recovery Will Be Key
Shadman Cotton Mills’ FY2026 results show a clear improvement in revenue, operating profit and bottom-line performance compared with the previous year. However, rising production costs, industry competition and the company’s stated financial constraints remain significant challenges.
The key priority for the coming year will be to convert higher turnover into sustainable earnings while managing working capital and evaluating alternative business opportunities. The company’s ability to maintain this momentum will be important in determining whether the recent improvement develops into a more consistent recovery.
