Shadman Cotton Mills Reports Rs26.68 Million Loss for Nine Months Despite Revenue Growth

Shadman Cotton Mills Limited has reported a net loss after tax of Rs26.68 million for the nine months ended March 31, 2026, compared with a net profit of Rs3.70 million recorded during the corresponding period last year, reflecting the challenging operating environment faced by Pakistan’s textile industry.

Despite the decline in profitability, the company’s net turnover increased by 17.3% to Rs474.98 million, up from Rs404.89 million in the same period of the previous financial year. However, rising production costs and other operating pressures outweighed the benefits of higher sales, resulting in a loss per share (LPS) of Rs1.51, compared with earnings per share (EPS) of Rs0.21 a year earlier.

According to the directors’ report, the company continued utilizing its apparel division manufacturing facilities and implemented alternative business strategies to sustain operations during the review period. Management acknowledged that Pakistan’s textile sector remains under pressure from elevated inflation, rising fuel and energy prices, and higher taxation, all of which have significantly increased operating costs.

For the third quarter alone, Shadman Cotton Mills posted a net loss of Rs21.93 million, compared with a profit of Rs1.09 million in the corresponding quarter last year, highlighting the continued pressure on earnings.

The company’s financial position showed total assets of Rs1.37 billion as of March 31, 2026, while shareholders’ equity stood at approximately Rs812.79 million. Cash and bank balances declined significantly to around Rs0.51 million, reflecting tighter liquidity during the period.

Looking ahead, the management remains cautiously optimistic. While acknowledging the ongoing challenges facing the textile industry, the company expects improved financial performance during the remaining months of the financial year by focusing on other business segments and continuing efforts to enhance operational efficiency. The board also expressed appreciation for the commitment and dedication of its employees in navigating the difficult business environment.