Karachi: GulAhmed Textile Mills Limited reported a significant decline in its annual profits for the fiscal year ending June 30, 2026. The company's unconsolidated financial statements, released on October 21, 2026, revealed a sharp decrease in profits, primarily attributed to reduced revenue and increased expenses in certain areas.
The textile giant's total assets fell to 133.45 billion rupees from the previous year's 151.09 billion rupees, indicating a noticeable contraction in its asset base. Non-current assets increased from 54.71 billion rupees to 58.60 billion rupees, with property, plant, and equipment seeing an increase to 54.74 billion rupees from 50.89 billion rupees. Intangible assets also rose to 70.17 million rupees from 45.22 million rupees.
Current assets, however, saw a sharp decline to 74.85 billion rupees from 96.39 billion rupees, largely due to a significant reduction in stock-in-trade, which plummeted to 42.22 billion rupees from 60.91 billion rupees. Trade debts also decreased to 18.10 billion rupees from 22.16 billion rupees. Meanwhile, short-term investments showed an increase to 2.24 billion rupees from 979.00 million rupees, and cash and bank balances surged to 586.60 million rupees from 166.43 million rupees.
The company's equity and liabilities reflected these shifts, with total share capital and reserves decreasing slightly to 47.93 billion rupees from 48.85 billion rupees. Non-current liabilities stood at 16.10 billion rupees, a minor decrease from the previous year's 16.66 billion rupees.
GulAhmed's revenue from contracts with customers fell to 129.72 billion rupees from 145.29 billion rupees, marking a very large or significant move in revenue decline. The cost of sales also decreased to 119.72 billion rupees from 126.39 billion rupees. The gross profit subsequently dropped to 10.01 billion rupees from 18.90 billion rupees.
Operating profit saw a drastic reduction to 2.87 billion rupees from 11.22 billion rupees. The decline was exacerbated by a moderate move in administrative costs, which increased to 3.87 billion rupees from 3.69 billion rupees. Other income rose to 1.90 billion rupees from 980.65 million rupees, while finance costs decreased to 3.92 billion rupees from 5.48 billion rupees.
The company posted a loss before taxation amounting to 490.17 million rupees compared to the previous year's profit of 5.14 billion rupees. Profit from continuing operations was reported at 27.77 million rupees, a big move down from 5.19 billion rupees. Discontinued operations resulted in a net loss of 950.37 million rupees compared to a 1.17 billion rupee loss the previous year.
According to information available from the Pakistan Stock Exchange (PSX), the results brought down earnings per share for continuing operations to 0.04 rupees from 7.01 rupees, and for discontinued operations to a loss of 1.28 rupees from 1.58 rupees, resulting in a total earnings per share of negative 1.24 rupees, down from 5.43 rupees.
The financial results reflect challenges faced by GulAhmed Textile Mills Limited during the fiscal year, amid fluctuating market conditions and operational hurdles. The company continues to navigate these challenges as it seeks to stabilize and improve its financial performance in the coming year.