Karachi: Tata Textile Mills Limited has announced its financial results for the first quarter ending September 30, 2026, revealing a significant decline in net profit despite an increase in revenue. The company's report, dated October 29, 2026, highlights the financial dynamics that have marked the quarter.

The revenue from contracts with customers rose to 12.37 billion rupees, up from 11.88 billion rupees in the same period last year. This increase in revenue did not translate into higher profitability, as the company's profit for the period declined to 702.45 million rupees from 1.55 billion rupees, representing a very large or significant move in profitability. The earnings per share also followed this downward trend, decreasing from 27.68 rupees to 12.55 rupees.

The cost of goods sold decreased to 10.40 billion rupees from 11.08 billion rupees, which helped improve the gross profit to 1.96 billion rupees compared to 794.86 million rupees last year. However, other operating expenses saw a significant rise, climbing to 633.54 million rupees from 40.02 million rupees, contributing to the decline in net profit.

Administrative expenses increased to 168.04 million rupees from 153.43 million rupees, and distribution costs rose to 141.81 million rupees from 122.88 million rupees. The finance costs, however, decreased to 559.84 million rupees from 713.28 million rupees, providing some relief to the financial burden.

According to information available from the Pakistan Stock Exchange (PSX), Tata Textile Mills Limited saw a notable decrease in other income, which fell to 199.27 million rupees from 2.68 billion rupees the previous year. This decrease significantly impacted the profit before levies and taxation, which stood at 660.98 million rupees, down from 2.45 billion rupees.

The company's levy expenses decreased to 228.69 million rupees from 320.04 million rupees, but the taxation impact turned positive, contributing 270.15 million rupees compared to a tax expense of 579.23 million rupees in the same quarter last year.

Overall, despite achieving higher revenue, Tata Textile Mills Limited faced challenges in maintaining its profitability due to increased operational and other expenses, as reflected in the significant changes in its financial metrics for the quarter.