Lahore: On October 30, 2025, Kohinoor Spinning Mills Limited released its financial report for the period ending September 30, 2025, revealing a net loss of Rs. 35.49 million. This represents a slight improvement from the Rs. 37.03 million loss reported during the same period last year. The financial statement outlines the ongoing difficulties faced by the company and the broader spinning industry.

The directors have injected Rs. 81 million into the company to sustain operations amidst a challenging economic environment. The spinning industry is grappling with a shortage of quality raw cotton, the high cost of importing cotton, and rising energy costs, all of which have contributed to the financial strain. Furthermore, high interest rates have hindered the ability to obtain working capital loans or invest in technological upgrades.

According to information available from the Pakistan Stock Exchange (PSX), the authorized capital for Kohinoor Spinning Mills Limited remains at 440 million ordinary shares of Rs. 5 each, with the issued, subscribed, and paid-up capital fixed at approximately Rs. 2.18 billion. The company's reserves have seen a decrease, with a negative balance of Rs. 3.77 billion, while the surplus on the revaluation of fixed assets stands steady at approximately Rs. 1.76 billion.

The company's directors have expressed their gratitude to shareholders for their unwavering support. However, they have also noted the ongoing challenges, including a shrinking international market due to global recessionary trends and stiff competition from regional competitors. The directors do not anticipate an immediate revival of the spinning industry in Pakistan, given these hurdles.

As of September 30, 2025, Kohinoor Spinning Mills reported current liabilities of Rs. 2.83 billion, a decrease from the Rs. 2.90 billion recorded on June 30, 2025. The company's current assets stand at approximately Rs. 471.10 million, with trade debts reported at Rs. 112.59 million and cash and bank balances at Rs. 1.44 million.

The financial report also highlights an operating loss of Rs. 42.98 million, with administrative expenses contributing significantly to this figure. The company reported an operating income of Rs. 7.50 million, unchanged from the previous year. After adjustments for non-cash charges and other items, the net cash used in operations amounted to Rs. 88.28 million.

Kohinoor Spinning Mills Limited continues to navigate a complex and challenging market, reflecting broader issues within the textile manufacturing sector. The directors' report underscores the precarious position of the industry and the need for strategic interventions to ensure long-term viability.