Karachi: Blessed Textiles Limited has announced a financial turnaround in its 39th Annual Report for the fiscal year ending June 30, 2026. The company posted a profit after tax of PKR 407.754 million, a significant recovery from a loss of PKR 96.882 million the previous year.

The report, dated October 6, 2026, illustrates the company's strategic measures to enhance profitability despite a challenging economic landscape characterized by lower demand and elevated operational costs. Revenue from contracts with customers rose to PKR 31.68 billion, up from PKR 30.43 billion the prior year, marking a very large sales growth of 4.09 percent.

The company's gross profit stood at PKR 2.32 billion, maintaining a consistent gross profit ratio of approximately 7 percent year-over-year. This stability is attributed to strategic inventory management and an increased focus on local sales, which accounted for 74 percent of the total sales volume, up from 55 percent in the preceding year. The company successfully reduced inventory levels by more than 20 percent, which improved liquidity and reduced carrying costs.

According to information available from the Pakistan Stock Exchange (PSX), the company's operating profit rose to PKR 1.62 billion, while finance costs decreased to PKR 1.16 billion from PKR 1.25 billion. Notional interest income contributed PKR 398.46 million to the profit before levies and income taxes, which totaled PKR 862.64 million, a notable increase from PKR 276.13 million in the previous fiscal year.

Despite the profit, the board decided against declaring a final dividend for the year, citing global and domestic economic uncertainties. This decision aligns with their strategy to preserve liquidity and financial flexibility for future growth. The board remains open to the possibility of declaring interim dividends, contingent on the company's profitability and cash flow situation.

Earnings per share (EPS) rose to PKR 63.39, a substantial improvement from a loss per share of PKR -15.06 last year. The breakup value per share also increased to PKR 1,300.84 from PKR 1,237.63, reflecting the company's stronger financial position.

The board expressed cautious optimism about the textile sector's outlook, anticipating that improved economic stability, lower interest rates, and growth in local and export demand will foster a gradual market recovery in the coming year.