Faisalabad: The Directors of Masood Textile Mills have released their annual report for the fiscal year ending June 30, 2026, presenting the audited financial statements in compliance with the Companies Act, 2017, and the Listed Companies (Code of Corporate Governance) Regulations, 2019. The report, dated October 6, 2026, outlines the company's financial performance amidst a backdrop of global economic uncertainty and domestic challenges.
During the fiscal year 2026, the global economic environment was marked by volatility, driven by evolving tariff policies in the United States and the ongoing conflict between Russia and Ukraine. These factors, coupled with disruptions in the Middle East impacting shipping routes through the Strait of Hormuz, led to increased energy, freight, and insurance costs. Despite these challenges, the International Monetary Fund's July 2026 World Economic Outlook Update projects a gradual improvement in global conditions as inflation is expected to ease in 2027.
Domestically, Pakistan's economy showed signs of resilience, achieving a provisional real GDP growth of 3.7%, up from 3.2% the previous year. Workers' remittances reached unprecedented levels, and the State Bank of Pakistan witnessed a strengthening of foreign exchange reserves. However, the country faced a modest current account deficit due to higher imports. Inflationary pressures surfaced in the latter half of the year, with an average inflation rate of 7.1%, up from 4.5% in the prior year. In response, the State Bank of Pakistan adjusted the policy rate from 10.5% in December 2025 to 11.5% in April 2026.
In the knitwear segment of the apparel industry, Pakistan experienced a decline in exports, totaling approximately USD 5 billion for FY2026. While knitwear exports dipped, ready-made garments posted growth, indicating a concentration of the slowdown in knitted products. The industry also grappled with higher production and delivery costs due to rising energy and freight charges.
Masood Textile Mills reported a 15.8% decrease in sales, amounting to Rs. 49,841 million, reflecting the broader decline in knitwear exports. Despite the drop in sales, disciplined cost management improved the gross margin to 16.6%, up from 15.2% in the previous year. Profit from operations before other income increased to 8.3% of sales. According to information available from the Pakistan Stock Exchange (PSX), the company's financial cost fell by 22.4% to Rs. 2,994 million, supported by effective working capital management and optimized borrowing strategies.
Profit before levy and taxation surged by 28.9% to Rs. 1,310 million. After accounting for a levy of Rs. 614 million, profit before taxation rose by 76.8% to Rs. 696 million. The most striking development was the profit after taxation, which increased by 516.3% to Rs. 809 million. Basic earnings per share jumped more than ninefold to Rs. 11.46, and diluted earnings per share rose to Rs. 10.86.
Additionally, the company undertook a revaluation of its land and buildings, resulting in a gross surplus of Rs. 6,908 million recognized in equity. This revaluation was conducted by an independent valuer and is detailed in Note 6 of the financial statements.
Overall, despite the global and domestic challenges, Masood Textile Mills reported a robust financial performance for the fiscal year 2026, driven by effective cost management and strategic financial decisions.