Lahore: The directors of Ghazi Fabrics International Limited have released the company's financial statements for the quarter ending September 30, 2026, revealing a challenging period marked by halted production and zero sales. This detailed report comes amid increasing global competition and rising production costs that have put significant pressure on the textile industry.

The company's decision to suspend production in the Spinning and Weaving Division was driven by rising raw material and utility costs, prompting management to focus on loss reduction through strategic operating decisions. The report for the three-month period highlights a gross loss of Rs. 42.49 million, down from Rs. 52.35 million in the same period last year, reflecting an 18.94% decrease. The loss after tax stands at Rs. 63.49 million, representing a 10.1% reduction from the Rs. 70.62 million reported previously. The loss per share has also been reduced to Rs. 1.95 from Rs. 2.16.

The absence of sales, a significant drop from Rs. 1,069,640 recorded in the previous year, underscores the financial strain on the company. According to information available from the Pakistan Stock Exchange (PSX), the textile sector faces heightened challenges, as rising production costs hinder competitiveness on an international level.

As the company navigates these turbulent times, the directors acknowledge the increasingly competitive landscape, highlighting significant commoditization within the textile industry. Ghazi Fabrics faces considerable obstacles in maintaining competitiveness against regional counterparts with lower production costs. The outlook remains challenging as the company seeks to adapt to these evolving market dynamics.