Karachi: Allawasaya Textile and Finishing Mills Limited reported a significant financial downturn in its un-audited financial statements for the first quarter ending September 30, 2026. The company recorded a net loss after tax of Rs.49,148,981, contrasting sharply with a net profit after tax of Rs.10,144,954 in the same period last year. This financial disclosure was outlined in the directors' review, dated October 29, 2026.

The textile sector, categorized under the designated market category, faced multiple adversities during the reported period. Increased manufacturing costs, primarily driven by rising raw material prices and high input costs, were compounded by a shortage of raw materials stemming from shipping disruptions. These factors forced the industry to operate below capacity, affecting the company's sales volume.

According to information available from the Pakistan Stock Exchange (PSX), Allawasaya Textile's financial performance was further impacted by global conflicts, which have triggered inflation and recessionary pressures in international markets. Additionally, domestic instability has also played a role in reducing demand for yarn and fabric. The influx of imported yarn and fabric has further challenged the viability of the local textile industry, particularly within the spinning and weaving sectors.

Despite these challenges, the company's management remains committed to exploring new opportunities to improve financial outcomes. They urge the government to reconsider its policies to better utilize idle capacity and boost exports. The board of directors expressed hope for an improved financial performance for the remainder of the fiscal year, ending on June 30, 2027.