Karachi: Shadman Cotton Mills Limited has announced a notable financial improvement for the fiscal year ending on June 30, 2026, as detailed in its 47th Annual Report presented to shareholders. The report, released on October 7, 2026, outlines the company's financial achievements, marking a significant shift from the previous fiscal year.

The company's net turnover for 2026 was reported at Rs. 737.632 million, up from Rs. 509.964 million in 2025. This 44.64% increase was attributed to the company's apparel division and alternative strategies. According to information available from the Pakistan Stock Exchange (PSX), Shadman Cotton Mills' financial results reflect a very large move in turnover.

Shadman Cotton Mills recorded a gross profit of Rs. 2.364 million, contrasting with a gross loss of Rs. 19.668 million in the previous year. The operating profit also saw a significant increase to Rs. 72.027 million, up from Rs. 13.918 million in 2025. The profit before levies and taxation was Rs. 3.404 million, reversing a prior loss of Rs. 28.928 million.

After accounting for levies and taxation, the company reported a profit of Rs. 30.821 million, compared to a loss of Rs. 16.572 million in the previous fiscal year. This translates to a profit per share of Rs. 1.75, a substantial improvement from a loss per share of Rs. 0.94 in 2025.

The report also detailed key financial obligations and legal matters. The company acknowledged a payable amount to the Excise and Taxation Officer, Government of Sindh, totaling Rs. 18.317 million, related to the year 2008, for which bank guarantees have been submitted. Additionally, a trade debt from LESCO amounting to Rs. 16.199 million remains in legal proceedings, with the company's management expressing confidence in a favorable resolution.

Liabilities include Rs. 28.544 million owed to Meezan Bank Limited, recognized in the company's accounts, with ongoing legal action. The Bank of Punjab loan liability is being managed through regular installments, with the company aiming to comply with restructuring requirements under IFRS 9 in the future.

The financial results indicate a strengthened position for Shadman Cotton Mills, with the break-up value of shares rising to Rs. 49.38 from Rs. 45.48 as of June 30, 2025. The company remains optimistic about its financial and operational strategies moving forward.