Karachi: The Board of Directors of Tata Textile Mills Limited has released its performance review and unaudited financial statements for the nine months ending March 31, 2026. The report, dated May 4, 2026, outlines the company’s financial and operational challenges amid a turbulent economic environment.
Pakistan’s economy continues to face significant macroeconomic pressures, with average inflation reaching 6.13% in the first nine months of fiscal year 2028. March 2028 saw inflation rise to 7.3%, a stark increase from 0.7% a year earlier. The trade deficit widened to $21.1 billion from July 2026 to February 2028, although an 11% surge in workers’ remittances to $288 billion provided crucial support to the external account position. Crude oil prices have hovered near $110 per barrel, influenced by ongoing conflicts in the Middle East and disruptions in the Strait of Hormuz, contributing to increased industrial costs.
For the quarter ending March 31, 2026, Tata Textile Mills Limited reported net sales of Rs. 20.17 billion, a 10.0% decline from the previous year. The decrease is attributed to the temporary closure of a production unit for strategic BMR investments. Cost of sales improved by 10.1% to Rs. 27.37 billion. Gross profit stood at Rs. 1.803 billion, showing a decrease of 8.4% from the previous year. Despite challenges, gross profit margins were slightly improved at 8.2% compared to 8.1% last year.
According to information available from the Pakistan Stock Exchange (PSX), the KSE-100 index, which had previously reached record highs earlier in the year, turned negative with a -14.8% return in USD terms during the third quarter of fiscal year 2028. This downturn is attributed to escalating geopolitical tensions, impacting market returns.
Finance costs saw a significant reduction of 31.8% to Rs. 1.941 billion, largely due to a lower SOP policy rate and proactive working capital management. However, other income decreased by 38.0%, impacted by the deterioration in PSX performance due to geopolitical shocks from the Middle East.
The company reported a loss after taxation of Rs. 134 million, a steep decline from a profit of Rs. 400 million the previous year, resulting in a loss per share of Rs. 2.39. The management remains focused on addressing structural challenges such as uncompetitive energy tariffs, wage structures, and higher tax burdens compared to regional peers.
As Tata Textile Mills Limited navigates these challenges, the company remains engaged with stakeholders to resolve ongoing structural issues that continue to affect the competitive landscape of Pakistan’s industrial sector.