Karachi: Gulistan Spinning Mills Limited has released its unaudited financial results for the first quarter ending September 30, 2026, revealing a continuation of its operational halt and financial challenges. According to the Director's report, the company has reported a pre-tax loss of 1,300,309 rupees for the period, a reversal from the pre-tax profit of 8,369,467 rupees recorded in the same quarter of the previous year.

The company, which has not conducted operations since May 1, 2014, due to financial liquidity issues, asset depreciation, and unfavorable economic conditions, has yet to resume its activities. This has resulted in a reported post-tax loss of 1,300,309 rupees for the quarter, contrasting sharply with the 8,369,467 rupees profit after taxation seen in the corresponding quarter of 2025.

Efforts to address the company's financial distress continue under a court-sanctioned Scheme of Arrangement. The scheme, approved by the Sindh High Court in Karachi on October 30, 2023, under sections 279 to 283 and 285 of the Companies Act 2017, aims to resolve existing litigation with banks and secure creditors.

According to information available from the Pakistan Stock Exchange (PSX), the legal framework is being executed as mandated by the court, with all pending bank litigations, both initiated by and against the company, being withdrawn by secured creditors.

Despite these judicial and financial restructuring efforts, the company's operational hiatus persists, leaving its future prospects uncertain amidst ongoing economic challenges. The report, dated October 30, 2026, underscores the company's struggle to regain its footing in the market.