Sunrays Textile Mills Delivers Strong Profit Growth, EPS Rises to Rs17.97 in FY2026

Sunrays Textile Mills Limited has reported a significant improvement in profitability for the financial year ended June 30, 2026, highlighting a stronger performance compared with the previous year.

According to the company’s financial statements submitted to the Pakistan Stock Exchange, the Board of Directors reviewed the company’s annual results at its meeting held on October 2, 2026. The company reported consolidated profit after tax of approximately Rs372 million, compared with around Rs75.8 million in the previous financial year. This represents a substantial year-on-year improvement. 284311

The improvement was also reflected in earnings per share. Consolidated basic and diluted earnings per share increased to Rs17.97 from Rs2.89 a year earlier, according to the consolidated financial statements. 284311

Stronger Bottom-Line Performance

Sunrays Textile Mills recorded consolidated profit before income tax of approximately Rs685.1 million during FY2026, compared with about Rs157.9 million in FY2025. After accounting for income tax, profit for the year stood at approximately Rs372 million. 284311

The company’s unconsolidated results also showed a notable improvement. Profit for the year reached approximately Rs370.5 million, compared with only about Rs7.6 million in the preceding year, while unconsolidated earnings per share rose to Rs17.90 from Rs2.89. 284311

Balance Sheet Remains Substantial

The consolidated balance sheet showed total assets of approximately Rs21.59 billion at June 30, 2026, compared with Rs20.16 billion a year earlier. Equity and reserves also increased, with total equity reaching approximately Rs9.57 billion. 284311

The company’s financial position therefore remained sizeable, although the statements also show significant current and long-term liabilities, including short-term borrowings and long-term financing.

Cash Flow Remains an Area to Watch

Despite the strong reported profit, cash-flow figures present a different aspect of the company’s financial performance. The consolidated cash-flow statement shows net cash used in operating activities of approximately Rs664.8 million during FY2026, compared with cash used of roughly Rs3.12 billion in FY2025. 284311

The company also reported net cash used in investing activities of approximately Rs252.4 million, largely reflecting investment in property, plant and equipment and other investment movements. 284311

While the reduction in operating cash outflow compared with the previous year is notable, the negative operating cash flow remains an important point for investors to consider alongside the company’s improved accounting profit.

No Dividend or Bonus Announced

The company’s October 2 filing stated nil for cash dividend, bonus shares, right shares and other entitlement or corporate action. 284311

The company has also announced its 35th Annual General Meeting for October 27, 2026, at 4:30 p.m. at Plot No. 3 & 7, Sector 25, Korangi Industrial Area, Karachi. The share transfer books are scheduled to remain closed from October 21 to October 27, 2026, inclusive. 284311

Outlook

Sunrays Textile Mills’ FY2026 results mark a significant improvement in profitability, with consolidated earnings increasing sharply and EPS rising to nearly Rs18. The stronger bottom line provides a positive headline for shareholders, while the company’s balance sheet and cash-flow position will remain important factors to monitor going forward.

Overall, the FY2026 results indicate that Sunrays Textile Mills entered the new financial year from a considerably stronger profit position than it had a year earlier, although investors may continue to watch operating cash generation and financing requirements closely.