Lahore: Shams Textile Mills Limited has reported a significant decrease in gross profit for the quarter ending September 30, 2026, highlighting the ongoing challenges faced by the textile sector both locally and globally. The company disclosed its financial performance in a report released on November 2, 2026.

The textile firm revealed a gross profit of PKR 5.701 million for the first quarter, a substantial decline from the PKR 26.241 million recorded in the previous quarter. The decrease in profit has been attributed to the volatile market conditions and inflationary pressures that have significantly increased the cost of production, thereby squeezing margins.

According to information available from the Pakistan Stock Exchange (PSX), the company's sales for the current quarter stood at PKR 950.30 million, an increase from PKR 919.10 million in the same period the previous year. Despite the rise in sales, Shams Textile Mills faced a loss from operations amounting to PKR 33.54 million, a sharp increase from the loss of PKR 8.67 million reported in the prior year's quarter.

Operating expenses rose to PKR 42.53 million from PKR 39.05 million, while other income fell to PKR 3.29 million from PKR 4.15 million. The finance cost slightly decreased to PKR 34.67 million from PKR 35.65 million. Consequently, the loss before levy widened to PKR 68.21 million compared to PKR 44.32 million in the same quarter of the previous year.

The provision for taxation was reported at PKR 11.88 million, up from PKR 11.49 million, leading to a loss after taxation of PKR 80.09 million, a significant move from the PKR 55.81 million loss recorded in the corresponding quarter of the previous year. The loss per share consequently rose to PKR 9.27 from PKR 6.46, reflecting the company's increased financial strain amidst challenging market conditions.