Bannu: Bannu Woollen Mills Limited has disclosed a significant financial downturn for the quarter ending September 30, 2026, due to seasonal factors that have affected the company's operations. The report, dated October 27, 2026, highlights a substantial decrease in both sales and profitability compared to the same period last year.
The company recorded net sales of Rs. 103.68 million for the quarter, a sharp decline from Rs. 235.46 million in the third quarter of 2025. This decrease in sales was attributed to a delayed onset of the winter season, which prompted dealers to defer their purchases of the company's seasonal woolen products. Consequently, Bannu Woollen Mills Limited experienced a gross loss of Rs. 9.77 million, contrasting with a gross profit of Rs. 103.62 million in the previous year.
Operational losses also surged, with the company reporting a loss from operations of Rs. 63.92 million, a stark contrast to a profit of Rs. 51.70 million in the corresponding period of the previous year. The finance costs increased to Rs. 19.66 million from Rs. 14.52 million, due to higher short-term borrowings needed to finance the inventory build-up.
According to information available from the Pakistan Stock Exchange (PSX), the company declared a loss before taxation of Rs. 83.58 million, compared to a profit before tax of Rs. 37.18 million last year. After accounting for a deferred tax credit, the loss after tax stood at Rs. 71.77 million, against a profit after tax of Rs. 23.67 million in the corresponding period. The loss per share was reported at Rs. 7.55, a reversal from earnings per share of Rs. 2.49 last year.
The management of Bannu Woollen Mills Limited has expressed that this financial shortfall is primarily due to timing differences rather than structural issues. With the winter season now commencing, the company anticipates an increase in dealer purchases in the upcoming quarter, which is expected to help recover the losses incurred during this period. The company's greasy production was reported at 293,306 meters of fabric, down from 326,547 meters in the same quarter of the previous year.