Karachi: The Directors of Nagina Cotton Mills Limited have released the company's 59th Annual Report, detailing financial results for the fiscal year ending June 30, 2026. The report highlights a notable increase in profit and sales amid a challenging economic landscape for the textile sector.

According to the report, profit after tax surged to Rs. 281,585,054, representing 1.31% of sales, a substantial improvement from the previous year's figure of Rs. 50,416,692, or 0.25% of sales. This increase resulted in an Earnings Per Share (EPS) rise to Rs. 15.06 from Rs. 2.70 in 2025.

The company's sales revenue experienced an 8.59% growth, totaling Rs. 21.56 billion compared to Rs. 19.86 billion in the previous year. This increase was largely attributed to higher sales volumes, which counterbalanced the effect of reduced per-unit selling prices. The cost of sales as a percentage of revenue decreased to 91.62% from 91.90%, driven by lower costs of raw materials, fuel, power, and reduced consumption of stores and spares. Consequently, the gross profit margin improved to 8.38% from 8.10%.

Operating expenses rose slightly to 3.13% of sales from 3.08% in the prior year, primarily due to inflationary pressures. However, the company maintained stable operational cash flows, enabling timely debt repayments. Finance costs eased to 2.70% of revenue from 3.63% the previous year, aided by reduced debt levels and monetary policy adjustments.

According to information available from the Pakistan Stock Exchange (PSX), Nagina Cotton Mills' performance was bolstered by the release of long-pending Technology Upgradation Fund (TUF) claims, further supporting the company's financial health.

In terms of capital assets investment, the company invested Rs. 758.98 million in BMR/Expansion, up from Rs. 216.15 million the previous year. This investment aligns with strategic plans to enhance productivity and efficiency in spinning operations. The company is also evaluating the expansion of solar power capacity to reduce its carbon footprint and promote sustainable energy solutions.

The Pakistan Cotton Ginners Association reported that Kapas arrivals at ginneries for the crop year 2026-27 totaled 2.389 million bales by September 15, 2026, marking a 19.17% increase compared to the previous year.

Nagina Cotton Mills Limited's financial results reflect the company's resilience and strategic initiatives amid ongoing challenges in the textile industry.