Karachi: Ali Asghar Textile Mills Limited has reported a significant increase in its profit after tax for the fiscal year ending June 30, 2026. According to the company's annual report released on October 13, 2026, the profit after income tax soared to Rs. 172,426,823, marking a very large or significant move from the previous year's Rs. 68,743,471.
The unconsolidated statement of financial position shows that the company's total assets reached Rs. 3.57 billion, up from Rs. 3.03 billion in 2025. A notable contributor to this increase is the rise in short-term investments, which grew to Rs. 1.36 billion from Rs. 959.56 million, reflecting a strategic allocation of resources by the company.
Total shareholders' equity rose to Rs. 3.06 billion from Rs. 2.51 billion, supported by a substantial increase in unappropriated profit, which climbed to Rs. 1.71 billion from Rs. 1.24 billion. This rise illustrates the company's robust performance in generating retained earnings over the year. Furthermore, the remeasurement of investment securities added an un-realised gain of Rs. 184.58 million, compared to Rs. 101.21 million in the previous year, enhancing the equity position.
The company's revenue from contracts with customers increased to Rs. 79.75 million from Rs. 69.09 million, while the cost of providing services rose to Rs. 43.52 million from Rs. 37.35 million. Despite these cost challenges, the gross profit improved, reaching Rs. 36.24 million from Rs. 31.73 million, indicating effective cost management and operational efficiency.
According to information available from the Pakistan Stock Exchange (PSX), the textile sector has been experiencing favorable conditions, which may have contributed to the company's financial performance. The PSX provides a platform for companies like Ali Asghar Textile Mills Limited to access capital and expand their operations.
Administrative expenses reduced significantly to Rs. 26.21 million from Rs. 34.42 million, which contributed to a reduction in operating losses, narrowing to Rs. 1.33 million from Rs. 7.81 million. However, other operating expenses increased to Rs. 11.36 million from Rs. 5.13 million, which impacted the overall operating performance.
Finance costs decreased slightly to Rs. 21.78 million from Rs. 23.20 million, while other charges, including brokerage commission, increased to Rs. 2.18 million from Rs. 1.63 million. On the other hand, other income surged to Rs. 274.54 million from Rs. 245.13 million, providing a significant boost to the profit before levies and income tax.
The profit before income tax rose to Rs. 164.41 million from Rs. 138.46 million, after accounting for levies of Rs. 84.83 million compared to Rs. 74.04 million in the previous year. The net taxation position improved, resulting in a net tax credit of Rs. 8.01 million, which further bolstered the profit after tax.
Earnings per share increased to Rs. 3.88 from Rs. 1.55, reflecting the company's improved profitability and providing a positive signal to investors in the textile industry's designated market category.