Karachi: Nazir Cotton Mills Ltd. has reported a notable turnaround in its financial performance for the fiscal year ended June 30, 2026, according to its Annual Report issued on October 9, 2026. The company, which faced challenges in the previous year, has recorded a net profit after taxation of Rs. 73.90 million, a substantial improvement from the loss of Rs. 1.69 million reported for the year ending in June 2025.
The company's directors, during the Annual General Meeting, highlighted the strategic realignment that has contributed to this financial recovery. The restructuring involved the cessation of textile operations and disposal of certain assets, which has paved the way for Nazir Cotton Mills Ltd. to explore high-growth, non-textile business sectors. This transition aims to diversify the company's revenue streams while assuring its long-term commercial viability.
According to information available from the Pakistan Stock Exchange (PSX), the company's financial restructuring and operational changes have been pivotal in achieving the reported profit figures. The company's decision to settle obligations with financial institutions and recognize related waivers has further enhanced its financial standing. The auditors, however, have expressed concerns regarding the company's going concern status, prompting the management to evaluate and address key operational factors.
The year also saw Nazir Cotton Mills Ltd. achieving sales of milk and biological assets amounting to Rs. 1.537 million, slightly down from the previous year's Rs. 1.599 million. Despite this decline, the company's profit before taxation rose to Rs. 73.53 million from Rs. 6.65 million in the prior year, bolstered by other operating income totaling Rs. 88.55 million, primarily from the disposal of buildings and scrap.
The auditor’s report also pointed out areas requiring attention, including historical tax filings and compliance with the Code of Corporate Governance and PSX Regulations. Management has acknowledged these concerns and is actively working on enhancing compliance and governance frameworks to align with regulatory standards.
Overall, the strategic initiatives and financial management efforts undertaken by Nazir Cotton Mills Ltd. have resulted in a significant move in financial performance, marking a notable turnaround as the company navigates its future growth trajectory.