Karachi: The Board of Directors of Bhanero Textile Mills Limited has released its 47th Annual Report, detailing the company's financial performance for the fiscal year ending June 30, 2026. The report highlights a substantial increase in profit after tax, reaching PKR 700.269 million, compared to PKR 114.229 million in the previous year, despite a minor move in sales revenue of 2.47%.
The financial report, dated October 6, 2026, reveals that Bhanero Textile Mills achieved a gross profit of PKR 2.97 billion, up from PKR 2.59 billion in the previous year. Other income also saw a notable rise, contributing PKR 442.14 million compared to last year's PKR 193.60 million. This improvement in operational performance and cost management resulted in an enhanced gross profit margin of 8.81%, up from 7.86% the previous year.
According to information available from the Pakistan Stock Exchange (PSX), the company's net profit margin increased significantly to 2.08% from 0.35% in the previous year. Bhanero Textile Mills attributed its strengthened financial performance to improved cash flow management, efficient working capital utilization, and a stronger liquidity position, which allowed for a reduction in short-term borrowings by over 44% and a 32% decrease in inventory levels.
Despite ongoing challenges with energy costs, the company managed to improve energy expenses as a percentage of the cost of sales, reducing it from 11% to 10%, which further supported its competitiveness in the textile sector.
The Board of Directors, on the recommendation of the Audit Committee, opted not to declare a final dividend for the year ended June 30, 2026. Instead, the company plans to retain earnings to bolster its financial position, support future growth initiatives, and maintain financial flexibility amidst prevailing economic uncertainties. However, the Board indicated that it might consider interim dividends during the year, contingent upon the company's profitability and economic conditions.
The company's earnings per share (EPS) showed a significant improvement, standing at 230.28 for the year, reflecting the enhanced shareholder value and the company's underlying financial strength.