Karachi: Gadoon Textile Mills Limited, a leading player in the textile sector, has reported a 7.07% increase in net sales, reaching Rs. 75.99 billion for the financial year ending June 30, 2026, up from Rs. 70.98 billion in the same period last year. This achievement comes despite a year marked by numerous challenges in the textiles industry, particularly within the spinning segment.
According to the company's annual report released on September 4, 2026, Gadoon Textile Mills has managed to maintain customer confidence with net profits rising to Rs. 2.62 billion from Rs. 2.39 billion in the previous year, reflecting a 9.89% increase. The growth in sales is attributed to an increase in yarn demand and steady growth in knitted bedding products, although higher energy costs partially offset the improved volumes.
The global economic environment during the fiscal year was characterized by uneven progress and increased volatility, with regional conflicts disrupting supply chains and affecting energy prices. For Pakistan, FY-26 saw continued macroeconomic stabilization under the IMF-supported reform program, despite external challenges. The country's current account balance posted a deficit of USD 139 million, with a significant trade deficit as imports escalated by 7.89% to USD 69,597 million, while exports fell by 5.97% to USD 30,126 million. However, workers' remittances grew by 8.6% to a record USD 41.6 billion, providing essential liquidity support.
According to information available from the Pakistan Stock Exchange (PSX), the textiles industry faced elevated conversion costs and limited pricing flexibility, impacting gross margins. Gadoon Textile Mills addressed these pressures through efficient procurement and optimization of product and energy mixes. The company's distribution costs increased by 17.67%, primarily due to higher logistics and export-related charges, while administrative expenses rose by 23.51% due to inflationary impacts.
The finance costs remained stable at Rs. 2,438.12 million, with capital expenditure focused on renewable energy and energy-efficient machinery. The company reported a remeasurement gain of Rs. 932.05 million related to the settlement of its SIDC liability with the Government of Sindh. Capital expenditure totaled approximately Rs. 6,016 million, aimed at enhancing productivity and energy efficiency through advanced machinery installation.
Gadoon Textile Mills' financial position as of June 30, 2026, reflects total assets of Rs. 72.72 billion and total equity of Rs. 26.73 billion. The spinning segment accounted for Rs. 59.10 billion in revenue, while knitted bedding products contributed Rs. 14.21 billion. No further investments were made in strategic ventures during the year, maintaining focus on core operations.
The company's strategic investments and efficient operational practices underscore its resilience in navigating the challenges faced by the textile industry, with a continued emphasis on sustainable growth and maintaining competitive advantage in the market.