Karachi: The Board of Directors of Faisal Spinning Mills Limited has released the company's 42nd Annual Report, detailing financial results for the fiscal year ending June 30, 2026. The report, dated October 6, 2026, outlines a loss after taxation of PKR 413.536 million, a significant increase from the previous year's loss of PKR 269.267 million.
The company's net sales revenue experienced a minor move, decreasing by 0.78%, from PKR 46.20 billion in 2025 to PKR 45.84 billion in 2026. Despite this, Faisal Spinning Mills managed to achieve a gross profit of PKR 3.49 billion, down from PKR 3.67 billion the previous year, indicating a reduction in gross margin from 7.95% to 7.61%.
According to information available from the Pakistan Stock Exchange (PSX), the company demonstrated effective working capital management by reducing inventory levels and short-term borrowings by over 35%. This strategic move is aimed at decreasing financing costs, enhancing liquidity, and supporting improved profitability in future financial periods.
The export and local sales composition remained consistent, with exports accounting for 72% and local sales 28% of the total sales volume. The company maintained its market presence despite challenges in the international textile markets, including subdued global demand and economic uncertainties.
In light of the financial loss, the board, following the Audit Committee's recommendation, has decided not to declare any dividends for the fiscal year. The decision aims to preserve cash resources to bolster the company's financial position and support its working capital needs amid prevailing market uncertainties.
The report also highlights the earnings per share (EPS) and book value per share (BVS) as key metrics for shareholder value assessment. The company reported a loss per share of PKR 41.35, up from a loss of PKR 26.93 in the previous year. The breakup value of a share decreased from PKR 1,217.08 in 2025 to PKR 1,176.22 in 2026.
Faisal Spinning Mills remains optimistic about its strong market position and operational improvements, which are expected to support future growth and profitability.