Karachi: The Hamid Textile Mills Limited has disclosed a notable decrease in sales and a continued net loss in its first quarterly report for the period ending September 30, 2026. According to the report released on October 29, 2026, the company has faced significant operational challenges that have impacted its financial performance.

The textile company reported a 6.88% decline in sales, falling from Rs. 250.103 million to Rs. 232.897 million compared to the same period last year, marking a very large or significant move. Despite these challenges, the company achieved a gross profit of Rs. 6.110 million, rising from Rs. 5.277 million in the corresponding period of the previous year.

The company's net loss after taxation for the first quarter stood at Rs. 11.568 million, compared to a loss of Rs. 10.095 million in the previous year’s quarter. The financial results also included depreciation expenses totaling Rs. 8.722 million.

According to information available from the Pakistan Stock Exchange (PSX), the textile sector has been adversely affected by unfavorable external environmental factors, which have led to an increased cost of doing business. This has compounded the challenges faced by Hamid Textile Mills Limited, as the company continues to grapple with liquidity issues stemming from ongoing litigation with a bank.

The company’s working capital financial facilities have expired, forcing reliance on its limited resources. However, management is actively negotiating a settlement with the bank to regularize financial limits, aiming for resolution in the foreseeable future. The resolution of these issues is seen as essential for stabilizing the company's financial situation and sustaining its operational activities.