Karachi: Nishat Chunian Limited has released its annual report for the fiscal year ending June 30, 2026, detailing significant improvements in profitability, despite a modest increase in revenue. The directors presented the company's financial results, which include both separate and consolidated audited financial statements.
According to the report dated October 2, 2026, the company closed the financial year with a revenue increase of 1.6%, reaching Rs. 86.8 billion, up from Rs. 85.4 billion in the previous fiscal year. The revenue growth is classified as a minor move. However, the company experienced a notable improvement in profitability metrics. Gross profit surged by 19.8% to Rs. 10.58 billion, while profit from operations increased by 16.8%, amounting to Rs. 7.81 billion. The net profit after taxation and levy more than doubled, reaching Rs. 1.59 billion, which is 1.84% of the revenue compared to 0.92% last year, indicating a very large or significant move.
According to information available from the Pakistan Stock Exchange (PSX), the directors have recommended a final dividend of Rs. 3 per share, in addition to an interim dividend of Rs. 1 per share declared earlier this year. This reflects the company's robust financial health and commitment to shareholder returns.
The company's investments in the textile sector were substantial, with a focus on enhancing operational efficiency. Notable investments include Rs. 1.70 billion in spinning equipment and Rs. 785 million in weaving machinery. These investments underscore the company's strategic focus on upgrading its production capabilities.
In terms of financial position, Nishat Chunian's total equity rose to Rs. 23.07 billion, while total liabilities increased slightly to Rs. 55.38 billion. Non-current liabilities saw a rise primarily due to increased long-term financing, which reached Rs. 10.96 billion, up from Rs. 7.99 billion.
The company's assets also expanded, with non-current assets reaching Rs. 26.75 billion and current assets totaling Rs. 51.70 billion. Noteworthy is the increase in trade debts and a reduction in stock-in-trade, reflecting the company's improved cash flow management.
Overall, the financial year 2025-26 marked a period of significant profitability growth for Nishat Chunian Limited, driven by better margins and strategic investments in operational efficiency. The company's focus on shareholder value through dividends and investments in its core textile business highlights its forward-looking approach in a competitive market.