Lahore: In its annual report released on October 5, 2026, Ghazi Fabrics International Limited disclosed a significant financial loss for the fiscal year ending June 30, 2026, marking a challenging period for the textile company. The financial statement revealed a net loss after taxation amounting to Rs. 604.94 million, a substantial increase from the Rs. 376.84 million loss reported in the previous year.

The company's revenue reserves indicated an accumulated loss of Rs. 2.96 billion, a slight improvement from the Rs. 3.03 billion loss in 2025. However, the total equity fell sharply to Rs. 3.75 billion from Rs. 4.59 billion, primarily due to a decrease in the capital reserves; the revaluation surplus on property, plant, and equipment dropped from Rs. 2.98 billion to Rs. 2.28 billion.

According to information available from the Pakistan Stock Exchange (PSX), the company's issued, subscribed, and paid-up share capital remained unchanged at Rs. 326.36 million. The directors' loan, categorized as unsecured, decreased from Rs. 4.32 billion to Rs. 4.10 billion, contributing to the overall decline in equity.

The liabilities showed a notable shift, with non-current liabilities increasing to Rs. 11.54 million from Rs. 6.07 million. Current liabilities, however, decreased to Rs. 31.72 million from Rs. 49.08 million, influenced by reduced trade and other payables.

On the asset side, the company reported a significant reduction in non-current assets, as property, plant, and equipment values fell to Rs. 2.26 billion from Rs. 3.96 billion, which impacted the overall asset value, bringing it down to Rs. 3.79 billion from Rs. 4.65 billion. Current assets saw an increase, reaching Rs. 609.30 million from Rs. 464.85 million, partially due to a rise in tax refunds and rebates due from the government.

The financial performance was further dampened by operating losses, which widened to Rs. 518.19 million from Rs. 370.46 million in the previous year. The cost of goods sold amounted to Rs. 226.14 million, contributing to a gross loss of Rs. 225.07 million. Other operating charges surged to Rs. 246.45 million from Rs. 6.65 million, exacerbating the overall loss before taxation, which was reported at Rs. 519.34 million.

The company's loss per share also reflected the deteriorating financial condition, increasing to Rs. 18.54 from Rs. 11.55. Ghazi Fabrics International Limited, operating within the textile sector of the market, faces significant challenges ahead as it navigates through this period of financial difficulty.