Lahore: Nishat Mills Limited has reported a significant financial performance for the quarter ended September 30, 2026, despite facing challenging conditions in Pakistan's textile sector. According to its interim financial report released on October 30, 2026, the company saw a notable increase in revenue and profit after tax, driven primarily by a rise in export sales.
Revenue for the quarter increased by Rs. 7.354 billion, marking a 16.34% growth from Rs. 45.013 billion in the same quarter last year to Rs. 52.367 billion. This increase was largely attributed to a surge in export sales, which grew by Rs. 5.498 billion from Rs. 25.018 billion to Rs. 30.516 billion. Gross profit also saw a significant rise, increasing by Rs. 1.372 billion, or 27.68%, from Rs. 4.956 billion to Rs. 6.328 billion. The profit after tax more than doubled with an increase of Rs. 802.792 million, resulting in a total of Rs. 1.575 billion, which represents a 103.94% rise from the previous Rs. 772 million. Additionally, other income increased by Rs. 318.235 million, a 20.69% rise, from Rs. 1.538 billion to Rs. 1.856 billion.
According to information available from the Pakistan Stock Exchange (PSX), the earnings per share reflect this positive trajectory, climbing from Rs. 2.20 to Rs. 4.48. This performance comes amid a backdrop of geopolitical tensions in the Middle East, which have disrupted ocean shipping routes and driven sea freight rates to unprecedented levels. The sector also faces challenges from uncompetitive energy tariffs, frequent fuel price adjustments, and high inflation, all impacting operational costs.
Looking forward, the textile sector's prospects hinge on value addition, technical textiles, and sustainable fabrics. Access to the EU market via GSP plus, along with steady demand from the UK, provides avenues to counteract U.S. trade barriers. European buyers' restructuring of supply chains to reduce reliance on China presents opportunities for compliant alternative suppliers. However, challenges such as raw cotton shortages, high interest rates, and ongoing shipping delays persist.
In response to these challenges, Nishat Mills Limited has outlined a comprehensive strategy focusing on operational efficiency, cost control, and product diversification. The company has secured its annual raw material needs through strategic local and import buying and is investing in solar power installations, Battery Energy Storage Systems (BESS), and high-efficiency looms to mitigate energy costs. The company aims to increase the share of high-value technical fabrics and garments in its sales mix, while strengthening client partnerships in European and UK markets.