Lahore: Shams Textile Mills Limited has released its annual financial report for the year ending June 30, 2026. The report reveals an increase in liabilities, while the company managed to narrow its losses compared to the previous fiscal year.
According to the company's statement of financial position, the total equity for the fiscal year 2026 decreased to 736.08 million rupees, down from 779.86 million rupees in 2025. The report highlights an increase in total liabilities to 1.95 billion rupees, up from 1.83 billion rupees the previous year. The non-current liabilities rose to 154.23 million rupees, primarily due to increased long-term financing and lease liabilities. In contrast, current liabilities surged to 1.79 billion rupees, driven by significant increases in short-term borrowings, which grew to 890.54 million rupees from 733.55 million rupees.
The company's asset base remained relatively stable at 2.68 billion rupees, with non-current assets slightly decreasing to 1.10 billion rupees. Current assets saw a rise to 1.56 billion rupees, largely influenced by an increase in trade debts to 408.25 million rupees from 121.11 million rupees.
On the profitability front, Shams Textile Mills Limited reported a narrowed loss after taxation of 44.16 million rupees for the year, a significant improvement from the 137.19 million rupees loss recorded in 2025. This improvement was despite a drop in revenue from contracts with customers, which fell to 3.76 billion rupees from 4.10 billion rupees. The cost of sales decreased to 3.48 billion rupees, resulting in a gross profit of 271.93 million rupees, a very large or significant move from the previous year's 91.98 million rupees.
The company’s distribution and administrative expenses totaled 152.43 million rupees, reflecting a moderate increase. Other income, however, decreased to 45.28 million rupees from 63.77 million rupees. Despite these challenges, the company achieved a profit from operations of 164.78 million rupees, a remarkable improvement from 8.18 million rupees in the prior year.
Finance costs increased to 161.70 million rupees from 105.65 million rupees, impacting the company's profitability. The report also noted a levy of 47.25 million rupees, slightly higher than the previous year's levy of 44.66 million rupees.
According to information available from the Pakistan Stock Exchange (PSX), Shams Textile Mills Limited's financial performance reflects ongoing challenges in the textile sector, marked by fluctuating costs and operational efficiencies. The loss per share stood at 5.11 rupees, a notable improvement from the previous year's loss per share of 15.88 rupees.
The report provides a comprehensive overview of the company's financial standing, indicating areas of both progress and concern as it navigates a challenging economic landscape.