Lahore: Din Textile Mills Ltd. has announced its return to profitability for the financial year ending June 30, 2026, as detailed in its 39th Annual Report. The report, dated October 2, 2026, indicates that despite a 17.52% decrease in net sales, the company achieved a profit after taxation of Rs. 103.6 million compared to a loss of Rs. 706.5 million in the previous year.
The company's financial turnaround is attributed to a significant reduction in finance costs, which fell by 30.66%, and an improvement in gross profit margin to 12.57% from 9.33% in 2025. The earnings per share improved to Rs. 1.97, up from a loss per share of Rs. 13.47 the previous year.
According to information available from the Pakistan Stock Exchange (PSX), Din Textile Mills operates within the textile sector, focusing on the manufacture and sale of yarn, fabric, and bedding products. The company has manufacturing sites in Pattoki and Raiwind, Punjab.
The Directors' report attributes the financial improvements to better manufacturing efficiency, disciplined management of cash flows, and reduced borrowing costs. However, the company faced challenges such as high energy tariffs and competition from imported yarn, alongside the need to manage cotton supply risks and international price fluctuations.
Financially, the company improved its operating cash flow to Rs. 3.60 billion from Rs. 788.4 million in 2025, and reduced short-term borrowings by Rs. 2.91 billion. Despite these positive developments, the Board of Directors opted not to recommend a dividend for the year, citing ongoing uncertainties within the textile industry.
Total assets were reported at Rs. 34.59 billion, with shareholders equity rising to Rs. 10.78 billion from Rs. 7.05 billion in the previous year. The company's cash and bank balances stood at Rs. 428.9 million at the end of the financial year.
The Directors' report also highlighted the principal risks faced by the company, including cotton supply and price volatility, energy costs, and geopolitical tensions affecting export demand. The Board is committed to closely monitoring these risks and maintaining a stable financial position to support future operations.