Karachi: Premium Textile Mills has reported a notable increase in profitability for the fiscal year ending June 30, 2026, despite a downturn in sales figures. This development comes as the company navigates a challenging market environment, as detailed in their corporate briefing session held on November 4, 2026.

The textile manufacturer recorded a sales decline of 14.34%, with revenue dropping from 29,012 million PKR in 2025 to 24,853 million PKR in 2026. This decrease is attributed to a shortfall of 50,434 yarn bags sold compared to budgetary projections. However, Premium Textile Mills managed to improve its gross profit by 7.29%, rising from 3,881 million PKR to 4,164 million PKR.

Operating profit also showed a positive trend, experiencing an 8.11% increase, climbing from 2,800 million PKR in the previous year to 3,027 million PKR. The company’s finance costs saw a significant reduction of 25.90%, dropping from 2,436 million PKR to 1,805 million PKR.

Profit before taxation and levies escalated by a substantial 130.57%, reaching 1,591 million PKR from the previous year's 690 million PKR. Net profit after taxation surged dramatically by 1430%, amounting to 857 million PKR, up from 56 million PKR in 2025. The earnings per share (EPS) saw a remarkable increase of 1439.65%, rising from 9.03 PKR to 139.03 PKR. The dividend per share (DPS) also witnessed a significant jump of 650%, reaching 15 PKR from 2 PKR the prior year.

According to information available from the Pakistan Stock Exchange (PSX), the company’s total assets increased by 3.56% to 30,412 million PKR, while total equity rose by 12.28% to 8,044 million PKR. The gross profit margin improved by a big move of 3.38%, while the net profit margin saw a similar big move, increasing by 3.25%.

Despite the lower than anticipated sales, with a variance of 6.56% from the budgeted 26,600 million PKR, the company benefited from a reduction in cost of sales due to a 9.38% decrease in raw material costs. This contributed to a minor move in administrative expenses, which were maintained within budget, and a reduction in distribution costs by 11.65% due to lower freight and handling charges.

Finance costs presented a minor reduction due to actual financial charges being slightly lower than budgeted. Additionally, other income showed a 100% increase, attributed to the effect of discounting financial liabilities.

In conclusion, despite the adverse sales performance, Premium Textile Mills' strategic management of costs and financial expenses, along with improved profitability ratios, have resulted in a significant enhancement of the company's financial standing in the market.