Lahore: Zephyr Textiles Limited has released its un-audited financial results for the first quarter ending September 30, 2026, revealing an 18.8% increase in net sales, which reached Rs. 2,330.91 million. This growth reflects an improved business volume compared to the same quarter last year, where net sales stood at Rs. 1,961.93 million.
However, despite the increase in sales, the company's gross profit experienced only a minimal rise of 1.6%, reaching Rs. 237.48 million. The slower growth in gross profit is attributed to a faster increase in the cost of sales, which jumped by 21.1% to Rs. 2,093.43 million. This resulted in a lower gross margin of approximately 10.2%, compared to 11.9% in the corresponding period of the previous year.
Operating profit saw a decline of 15.2%, falling to Rs. 72.41 million. The decrease is primarily due to higher operating expenses, despite an improvement in other operating income. The finance cost provided some relief, decreasing by 18.2% to Rs. 44.24 million.
According to information available from the Pakistan Stock Exchange (PSX), the profit after levy and taxation saw a significant decline of 62.5%, amounting to Rs. 3.53 million, in contrast to Rs. 9.41 million in the previous year. Consequently, earnings per share also dropped from Rs. 0.16 to Rs. 0.06.
The textile industry in Pakistan, a designated market category, continues to present opportunities through value-added exports and increased operational efficiency. Textile exports rose by 5.26%, reaching approximately US$5.03 billion during the July-September 2026 period, compared to US$4.78 billion in the same period last year. Despite this growth, the sector faces challenges from rising energy and input costs, taxation, and intense regional competition, which continue to pressure export margins.
Zephyr Textiles Limited's management has outlined plans to improve its product mix, enhance capacity utilization, control conversion and overhead costs, and strengthen procurement and inventory controls. The company aims to improve energy efficiency and accelerate receivable collections while maintaining a focus on quality, timely deliveries, and sustainable customer relationships. Management will closely monitor market demand, raw-material prices, exchange-rate movements, and policy developments.