Yousaf Weaving Mills Limited has reported a net loss of Rs406.28 million for the financial year ended June 30, 2026, compared with a loss of Rs306.71 million in the previous year, as higher production costs and declining sales continued to put pressure on the company’s financial performance.

According to the company’s financial statements, net sales fell to Rs636.11 million in FY2026 from Rs639.74 million in FY2025. Meanwhile, the cost of sales increased to Rs975.71 million from Rs894.21 million, resulting in a gross loss of Rs339.60 million, compared with a gross loss of Rs254.47 million in the preceding year.

The company’s operating loss widened to Rs395.02 million during the year, compared with Rs294.73 million in FY2025. Administrative expenses increased to Rs49.08 million from Rs33.59 million, while distribution costs remained relatively stable at Rs6.36 million.

After accounting for other operating charges, finance costs, other operating income and levies, the company’s loss before taxation reached Rs406.28 million, compared with Rs306.71 million a year earlier. The loss per share also increased to Rs2.76 from Rs2.26.

Financial Position and Liabilities

Yousaf Weaving Mills reported total assets of approximately Rs1.49 billion as of June 30, 2026, compared with Rs1.65 billion a year earlier. Current assets stood at Rs206.24 million, while non-current assets amounted to approximately Rs1.29 billion.

The company’s current liabilities increased to Rs1.14 billion from Rs1.28 billion in the previous year, while non-current liabilities declined slightly to Rs99.53 million from Rs101.17 million. Total liabilities and equity stood at approximately Rs1.49 billion at the end of the reporting period.

The balance sheet also showed an increase in issued, subscribed and paid-up share capital to Rs1.72 billion from Rs1.36 billion. However, accumulated losses widened to approximately Rs2.26 billion, reflecting the company’s continued financial challenges.

Cash Flow Remains Under Pressure

The company’s cash flow position also weakened during FY2026. Net cash used in operating activities reached Rs283.03 million, compared with net cash generated of Rs28.73 million in FY2025.

Yousaf Weaving Mills spent approximately Rs65.30 million on property, plant and equipment during the year. Net cash used in investing activities stood at Rs68.86 million, compared with Rs39.17 million in the previous financial year.

Financing activities generated net cash of Rs348.46 million, supported by long-term borrowing from directors and changes in short-term borrowings. Despite this inflow, cash and cash equivalents decreased by Rs3.43 million during the year, leaving the company with a closing cash balance of Rs4.16 million.

Outlook

Yousaf Weaving Mills’ FY2026 results highlight the pressure that elevated production costs can place on textile businesses, even when sales remain relatively stable. The widening gross and operating losses, combined with negative operating cash flow, indicate that improving cost efficiency and strengthening liquidity will be important priorities for the company.

The company’s future performance will depend on its ability to control manufacturing expenses, improve margins, manage financing requirements and generate sustainable cash flow. Investors will likely monitor upcoming financial results for signs of recovery in profitability and improvements in the company’s overall financial position.