Lahore: Yousaf Weaving Mills Limited has reported its financial results for the fiscal year ending June 30, 2026, revealing significant strides in modernizing its production capabilities alongside ongoing financial challenges. The annual report, released on October 7, 2026, details the company's strategic efforts to enhance operational efficiency while grappling with substantial losses.
The report highlights the company's substantial investment in new air-jet looms, air compressors, and dryers as part of its Balancing, Modernization, and Replacement (BMR) program. This investment aims to elevate the company's weaving operations, improve product quality, and boost production efficiency. Management anticipates the newly installed machinery will enhance capacity utilization in the forthcoming periods.
Financially, the company has navigated its obligations with notable repayments. Full settlement of liabilities to the Bank of Punjab and repayment of the principal amount due to the National Bank of Pakistan are key milestones. According to information available from the Pakistan Stock Exchange (PSX), these actions are part of a broader strategy to improve Yousaf Weaving Mills Limited's banking relationships and financial standing.
Despite these efforts, the company recorded a gross loss of Rs. 339.602 million, up from a gross loss of Rs. 254.473 million in the previous year. The net loss also increased to Rs. 406.278 million, compared to Rs. 306.714 million last year. This decline is attributed to elevated production costs and underutilized capacity.
The company's directors and sponsoring shareholders contributed Rs. 395.417 million over the year to support operations and banking commitments. A significant portion of these funds, Rs. 363.525 million, was converted from a director's loan into share capital, thereby fortifying the company's equity and reducing loan liabilities.
Auditors have raised concerns regarding Yousaf Weaving Mills Limited's ability to continue as a going concern, citing accumulated losses and liquidity constraints. Despite these challenges, the board maintains confidence in the company's future, supported by financial backing and modernization initiatives.
The company, primarily engaged in manufacturing and selling yarn and fabric, continues to face market risks, including currency fluctuations, interest rate changes, and price volatility. Nevertheless, management remains focused on operational recovery and long-term sustainability, bolstered by ongoing negotiations to restructure remaining banking facilities.
The report concludes with the reappointment of M/s. Saeed Ul Hassan & Co. Chartered Accountants, Lahore, as auditors for the financial year 2026-2027, following the recommendation of the Audit Committee.