Karachi: The Directors of Saif Textile Mills Limited have released the company’s 37th Annual Report, presenting the audited financial statements for the fiscal year ending June 30, 2026. This comprehensive report, complying with Section 227 of the Companies Act, 2017, and the Listed Companies (Code of Corporate Governance) Regulations, 2019, will be submitted to shareholders at the forthcoming Annual General Meeting scheduled for October 27, 2026.
Saif Textile Mills Limited, primarily involved in the production and sale of yarn, reported a turnover of Rs. 11.7 billion for the reviewed financial year. The revenue reflected a modest increase compared to the previous period. Notably, a reduction in the cost of sales facilitated an increase in the gross profit margin from 11% to 14%, ultimately resulting in a gross profit of Rs. 1.6 billion. This improvement was attributed to the mills operating at full capacity throughout the year, alongside advancements in operational efficiencies, a market-responsive product mix, and penetration into new markets.
According to information available from the Pakistan Stock Exchange (PSX), the company’s strategic management of working capital and decreased finance costs contributed significantly to the financial upturn. Consequently, Saif Textile Mills Limited transitioned back to profitability, recording a profit before tax of Rs. 242 million, a stark contrast to the Rs. 419 million loss before tax reported in the previous year. This represents a financial turnaround of Rs. 661 million.
The earnings per share for this period were reported at Rs. 8.51, in stark contrast to the loss per share of Rs. 14.70 recorded in 2025. Despite this positive financial performance, the Board, in its meeting on September 30, 2026, recommended that no dividend be distributed for the fiscal year ending June 30, 2026, consistent with the previous year’s decision of not distributing cash dividends.
Saif Textile Mills Limited boasts a range of certifications, including ISO certifications in environment, quality, laboratory accreditation, and occupational health and safety management systems. Additionally, the company holds certifications from various global standards, including the Global Organic Textile Standard (GOTS) and the Global Recycled Standard (GRS), among others.
The company’s credit rating remains stable, with a long-term rating of "A-" and a short-term rating of "A2," as maintained by the Pakistan Credit Rating Agency (PACRA). This reflects a stable outlook for the company’s financial future.
Saif Textile Mills Limited’s effective cash flow strategy has been pivotal in meeting its financial obligations, ensuring vigilant monitoring of cash inflows and outflows.