Lahore: Directors of Ahmad Hassan Textile Mills Limited have released the company's 37th annual report, highlighting a year of stable financial performance despite economic challenges. The report, dated October 8, 2026, provides insights into the company's financial activity in the fiscal year 2026.

The financial year saw Pakistan's economy achieve a GDP growth rate of 3.7 percent, showing signs of recovery from previous challenges. The agriculture sector expanded by 2.89 percent, while industry and services grew by 3.51 percent and 4.09 percent, respectively. Construction saw a robust growth of 5.73 percent. The State Bank of Pakistan maintained a cautious policy stance, closing the fiscal year with a policy rate of 11.5 percent. The Pakistani rupee remained stable against the US dollar, closing at PKR 279.0/USD by the end of June 2026, an essential factor in anchoring inflation expectations which averaged 7.0 percent for the year.

For Ahmad Hassan Textile Mills Limited, sales revenue slightly decreased to 5.42 billion rupees from 5.63 billion rupees in the previous year, marking a 3.68 percent decline. The gross profit margin declined from 7.64 percent to 6.92 percent. Profit before taxation rose moderately from 2.65 percent to 2.87 percent, largely due to a significant reduction in finance costs by 35.26 percent. This reduction was attributed to the decline in the policy rate and improved management of customer credit periods. Profit after taxation saw a decrease from 1.67 percent to 1.58 percent, with earnings per share recorded at Rs. 10.11 compared to Rs. 11.12 in the previous year.

According to information available from the Pakistan Stock Exchange (PSX), the textile sector has faced headwinds, yet companies like Ahmad Hassan Textile Mills Limited have managed to sustain their financial metrics. The report notes that distribution costs decreased due to lower export sales, while administrative expenses saw a slight increase, primarily influenced by inflationary pressures.

The directors' report also emphasized that the previous year's profit after tax benefited from a reversal of deferred tax liability amounting to Rs. 15.89 million. In contrast, the current year's financials did not recognize a potential Rs. 200.48 million reversal to avoid reporting abnormal profits. If this reversal had been recognized, the profit after tax would have reached Rs. 286.15 million.

The report underscores the resilience of Ahmad Hassan Textile Mills Limited in navigating a challenging economic landscape while maintaining a focus on financial stability and strategic management.