Lahore: Kohinoor Spinning Mills Limited has released its annual report for the fiscal year ending June 30, 2026, highlighting a significant reduction in losses compared to the previous year. The report, presented to shareholders during the Annual General Meeting on October 28, 2026, outlines the financial trajectory and ongoing challenges facing the company amidst a turbulent economic environment.
The company reported an operating loss of 254.05 million rupees for the year, a notable improvement from the 507.56 million rupees loss in 2025. After taxation, the loss narrowed to 210.48 million rupees from 494.21 million rupees the previous year. The basic loss per share also decreased, standing at 0.38 rupees in 2026 compared to 1.13 rupees in 2025.
Despite these improvements, the report underscores the precarious financial situation of Kohinoor Spinning Mills, as highlighted by the auditors' emphasis on the uncertainty of the company's ability to continue as a going concern. The management, however, insists on a going concern basis for the preparation of financial statements, citing reasons detailed in the accompanying notes.
According to information available from the Pakistan Stock Exchange (PSX), the textile sector in Pakistan, particularly the spinning industry, continues to face substantial structural and economic hurdles. Key issues include volatile cotton prices, high energy costs, and pressure on yarn selling prices, all of which have impacted the operational viability of spinning mills.
Throughout the past year, Kohinoor Spinning Mills reported no operational activity, attributing its financial losses to fixed costs such as depreciation, administrative expenses, and regulatory fees. The management remains committed to improving performance and protecting shareholder interests, although the industry landscape presents formidable challenges.
The broader textile industry in Pakistan is grappling with increased energy costs and logistical expenses, alongside competitive pressures from international markets. These dynamics, coupled with fluctuating exchange rates and regulatory demands, have strained the competitiveness of Pakistani textile exporters.
The Board of Kohinoor Spinning Mills has adopted a cautious stance regarding the resumption of manufacturing operations. The decision to restart production hinges on various economic indicators, including cotton and yarn prices, energy costs, and overall market demand. The Board emphasizes the necessity of a prudent approach to safeguard the company’s financial resources and long-term shareholder value.
As the company navigates these complexities, it continues to monitor market conditions closely, aiming to resume or expand operations when economically viable. The strategic focus remains on protecting the company's assets while aligning future operations with favorable economic returns.