Karachi: Directors of Ahmad Hassan Textile Mills Limited presented the company's 37th annual report on October 13, 2026, highlighting the financial performance in a year marked by both economic recovery and ongoing challenges. The report was accompanied by the financial statements and auditors' report.
In 2025, Pakistan's economy showed signs of sustained recovery with GDP growth estimated between 2.68% and 2.7%. This was driven by macroeconomic stability from the IMF Extended Fund Facility reforms. However, the year also faced challenges from adverse weather conditions affecting agriculture and a reduction in large-scale manufacturing output. Despite these hurdles, strong corporate earnings and increased investor confidence played a positive role. The economy continued to recover in FY-2026, achieving an estimated GDP growth rate of 3.7%, with improved macroeconomic stability. Agriculture expanded by 2.89%, industry by 3.51%, services by 4.09%, and construction by 5.73%.
The State Bank of Pakistan maintained a balanced policy stance throughout the year, with a policy rate cut in December 2025 followed by a calibrated hike in May 2026, closing FY-2026 at 11.5%. The rupee remained stable, closing June 2026 at PKR 279.0/USD, while headline inflation averaged 7.0% for the year, peaking at 11.1% YoY in June.
According to information available from the Pakistan Stock Exchange (PSX), Ahmad Hassan Textile Mills Limited reported a decrease in sales revenue for 2026, totaling Rs. 5.42 billion, down from Rs. 5.63 billion in 2025. This represents a very large or significant move of 3.68%. The gross profit margin also declined, moving from 7.64% to 6.92%, while profit before tax improved from 2.65% to 2.87%. This improvement was largely due to a 35.26% reduction in finance costs, attributed to the decline in the policy rate and better management of customer credit periods.
The company's profit after tax decreased from Rs. 94.20 million in 2025 to Rs. 85.67 million in 2026, marking a moderate move in profit decrease. This decline was partly because a deferred tax liability reversal of Rs. 15.89 million had contributed to the previous year's profit. In 2026, a deferred tax liability reversal of Rs. 200.48 million was deliberately not recognized, avoiding an abnormal profit report. Had it been accounted for, the profit after tax would have been Rs. 286.15 million.
Distribution costs decreased due to lower export sales, while administrative expenses saw a moderate increase due to inflationary pressures. Earnings per share for the current financial year stood at Rs. 10.11, compared with Rs. 11.12 in the preceding year, reflecting the challenges and adjustments faced by the company in a recovering economy.