Lahore: Ellcot Spinning Mills Limited has reported a significant increase in net profit for the fiscal year ending June 30, 2026, according to the company's 38th Annual Report released on October 6, 2026. Despite persistent macro-economic challenges in the textile sector, particularly within the spinning segment, the company achieved a robust financial performance.
The company's net profit after tax surged to Rs. 206.18 million, a notable improvement from the previous year's profit of Rs. 76.62 million. This represents a very large or significant move in profitability, with net profit accounting for 1.27% of sales, up from 0.48% last year. As a result, earnings per share rose to Rs. 18.83, compared to Rs. 7.00 in the prior year.
Sales revenue for the year increased by 2.14% to Rs. 16.23 billion, driven primarily by higher sales volume that offset a drop in per-unit selling prices. The cost of sales as a percentage of revenue improved to 93.05% from 93.89% due to reductions in key input costs such as raw material, power and fuel, and stores and spares consumed.
Operating expenses increased to 2.70% of revenue from 2.28% in the previous year, largely due to inflationary pressures on administrative and selling costs. Nonetheless, the company maintained stable operational cash flows, ensuring the timely settlement of liabilities and scheduled repayments of long-term debt. Finance costs eased to 1.84% of revenue from 2.08% in the prior year, driven by reduced overall debt levels and monetary policy easing.
According to information available from the Pakistan Stock Exchange (PSX), Ellcot Spinning Mills' financial performance reflects strategic management decisions in a challenging economic environment. The company expressed gratitude to the government for the release of pending technology upgradation fund claims.
In terms of capital assets investment, the company invested Rs. 687.46 million in Balancing, Modernization, and Replacement (BMR) and expansion, up from Rs. 464.00 million in the previous year. The company is also evaluating further solar power capacity as part of its commitment to reducing its carbon footprint and promoting sustainable energy solutions.
The Pakistan Cotton Ginners Association reports that Kapas arrivals at ginneries for the crop year 2026-27 up to September 15, 2026, totaled 2.39 million bales, showing a big move with a 19.17% increase compared to 2.00 million bales in the previous year.