Karachi: Quetta Textile Mills Limited, in its 57th Annual Report for 2026, disclosed a substantial financial loss amidst ongoing industry hardships, as per the Directors' Report submitted to shareholders. The report, dated November 6, 2026, highlights the audited financial statements for the fiscal year ending June 30, 2026.

The company's sales for the year amounted to Rs. 1.476 billion, marking a 38.61% rise compared to the previous year's Rs. 1.065 billion. However, the cost of sales increased to Rs. 2.303 billion, a 1.32% increase from the prior year, contributing to a gross loss of Rs. 826.69 million. This figure represents a 31.55% improvement from the previous year's gross loss of Rs. 1.208 billion.

The loss before taxation was reported at Rs. 849.44 million, down from Rs. 1.623 billion, indicating a 47.67% improvement. Despite the lower pre-tax loss, the taxation for the year increased by 37.84% to Rs. 18.45 million, resulting in a post-tax loss of Rs. 867.89 million, a 46.97% improvement year-on-year.

According to information available from the Pakistan Stock Exchange (PSX), Quetta Textile Mills' operations reflected a challenging economic environment, with the company's accumulated loss carried forward at Rs. 7.358 billion, a 12.67% increase. The company's liabilities exceeded its assets by Rs. 8.471 billion, resulting in a current ratio of 0.26:1, down from 0.35:1 the previous year.

The report attributes the financial strains primarily to soaring energy prices, power levies, and the high cost of doing business, compounded by weak local and global demand for textiles. The textile sector in Pakistan has been significantly impacted, with many manufacturing entities facing downsizing or closure due to unaffordable electricity and gas tariffs.

The directors expressed commitment to supporting the company moving forward, despite no dividend being recommended for the year. The Earnings per Share (EPS) reflected a loss of Rs. 66.76, compared to a loss of Rs. 125.90 in the previous year. The company maintains an unfunded gratuity scheme for its employees, as noted in the financial statements.

The overall economic review underscores the urgent need for government intervention to reduce energy costs, which have adversely affected operational sustainability across the industry. The high tariffs have led to widespread layoffs, undermining economic activity and necessitating immediate policy measures to safeguard the sector's viability.