Karachi: Dewan Farooque Spinning Mills Limited (DFSM) has released its annual financial report for the fiscal year ending on June 30, 2026, revealing increased losses amid declining revenues. The report, dated October 5, 2026, highlights a challenging year for the company in the textile industry, marked by significant financial setbacks.
The company's total equity and liabilities dropped to Rs. 11.94 billion from Rs. 12.15 billion in the previous year, reflecting a contraction in the company's financial standing. The issued, subscribed, and paid-up capital remained stable at Rs. 977.51 million, while accumulated losses in the revenue reserve widened to Rs. 2.21 billion from Rs. 2.14 billion in the prior year.
According to information available from the Pakistan Stock Exchange (PSX), DFSM's capital reserves, specifically the revaluation surplus on property, plant, and equipment, decreased to Rs. 10.75 billion from Rs. 10.89 billion, contributing to the overall decline in equity and liabilities.
On the liabilities front, the company reported no long-term loans, a notable change from the Rs. 2.66 million recorded last year. However, deferred taxation and deferred liability for staff gratuity rose to Rs. 542.20 million and Rs. 25.92 million, respectively. Current liabilities increased slightly to Rs. 1.85 billion from Rs. 1.80 billion, driven by a rise in short-term borrowings to Rs. 467.86 million from Rs. 412.86 million.
The company's total assets also mirrored the contraction, falling to Rs. 11.94 billion from Rs. 12.15 billion. Non-current assets, including property, plant, and equipment, decreased to Rs. 11.75 billion from Rs. 11.98 billion, while current assets saw a minor reduction to Rs. 128.92 million from Rs. 130.35 million.
Sales revenue, a critical measure of the company's market performance, showed a significant increase to Rs. 275.15 million from Rs. 219.25 million in 2025. Despite this, the cost of sales exceeded revenue, leading to a gross loss of Rs. 241.29 million, slightly worse than the Rs. 239.68 million loss recorded the previous year.
Operating expenses remained relatively stable, with administrative expenses at Rs. 24.50 million and selling and distribution expenses at Rs. 9.76 million. The operating loss widened marginally to Rs. 275.55 million from Rs. 274.14 million in 2025. Other income saw a drastic fall, contributing to a net loss before taxation of Rs. 266.71 million, compared to Rs. 238.66 million the prior year.
The report disclosed a net taxation benefit of Rs. 56.03 million, resulting in a loss after taxation of Rs. 210.68 million, slightly better than the Rs. 213.30 million loss in 2025. The loss per share improved marginally to Rs. 2.16 from Rs. 2.18 in the previous year.
This annual report underscores the financial challenges faced by Dewan Farooque Spinning Mills Limited as it navigates a difficult economic landscape, reflecting broader industry trends and economic conditions impacting the textile sector in Pakistan.