Karachi: J.K. Spinning Mills Limited has reported a notable increase in revenue and profitability for the first quarter of 2026, according to its unaudited financial statements released on October 29, 2026. The company's sales surged by 19.01%, reaching Rupees 12,247.398 million, up from Rupees 10,277.997 million in the corresponding period last year. Profit after tax rose to Rupees 512.443 million, translating to a profit margin of 4.18%, compared to a margin of 2.97% in the same period of the previous year. This improvement was reflected in the earnings per share, which increased to Rs. 5.01 from Rs. 3.01.
The company attributed this growth to increased business activity, although it also faced higher expenditures due to inflationary pressures impacting costs for materials, maintenance, and wages. Notably, J.K. Spinning Mills reduced its fuel and power costs, aided by a decrease in electricity tariffs and a strategic shift towards renewable energy sources. The company's solar power generation capacity doubled from 7.5 MW to 15.5 MW, which is now fully operational. This expansion demonstrates the company's commitment to sustainable energy and cost-effective operations.
J.K. Spinning Mills has continued its focus on Balancing, Modernization, and Replacement (BMR) of its machinery and equipment, aiming to enhance operational efficiency and production capabilities while maintaining competitiveness in a dynamic market environment. These efforts are part of the company's broader strategy to support environmental objectives and long-term sustainability.
According to information available from the Pakistan Stock Exchange (PSX), the company's gross profit increased to Rupees 1,472.747 million from Rupees 1,403.178 million, despite the rise in operating expenses to Rupees 733.811 million. Other income significantly increased to Rupees 280.186 million from Rupees 35.557 million, contributing to a profit from operations of Rupees 1,019.122 million, up from Rupees 862.565 million. However, finance costs saw a reduction, standing at Rupees 242.249 million compared to Rupees 377.856 million in the previous year.
Despite the robust financial performance, the board of directors has decided not to recommend any interim dividend, citing the current volatile market conditions. The company remains focused on strategic investments and cost management to navigate the challenges and capitalize on growth opportunities in the textile sector.