Karachi: Tata Textile Mills Limited has reported a substantial increase in profits for the financial year ending June 30, 2026, despite a slight drop in revenue. This information is detailed in the company's annual report, released on October 2, 2026.
According to the report, the company's total assets decreased to 55.28 billion rupees from the previous year's 57.90 billion rupees. This reduction was observed despite an increase in non-current assets, which rose to 26.36 billion rupees from 25.37 billion rupees. Conversely, current assets saw a decline, falling to 28.92 billion rupees from 32.53 billion rupees, largely due to a decrease in stock in trade and cash balances.
The company's financial position was marked by a notable increase in unappropriated profits, which surged to 12.46 billion rupees from 8.50 billion rupees, contributing to the overall equity and reserves, now standing at 27.32 billion rupees, up from 23.69 billion rupees.
Tata Textile Mills Limited's liabilities also saw a shift. Non-current liabilities increased to 8.53 billion rupees from 7.70 billion rupees, while current liabilities experienced a significant decrease, dropping to 19.43 billion rupees from 26.51 billion rupees. The reduction in short-term borrowings, down from 19.42 billion rupees to 12.97 billion rupees, was a key factor in this decline.
The company reported a gross profit of 3.72 billion rupees, up from 2.29 billion rupees in the previous year. This increase occurred despite a drop in revenue from contracts with customers, which fell to 39.84 billion rupees from 41.24 billion rupees, marking a minor move of -3.39%.
According to information available from the Pakistan Stock Exchange (PSX), Tata Textile Mills Limited's financial performance was bolstered by a significant increase in other income, which rose to 5.22 billion rupees from 4.79 billion rupees. This influx of income helped offset the net finance cost, which, despite a reduction, remained high at 2.57 billion rupees.
The company's profit before taxation rose dramatically to 4.19 billion rupees, up from 1.33 billion rupees, reflecting a very large or significant move of 214.01%. After accounting for taxation of 570.28 million rupees, the profit for the year stood at 3.62 billion rupees, a substantial increase from the previous year's 1.11 billion rupees. This resulted in earnings per share climbing to 64.63 rupees from 19.88 rupees.
The report highlights Tata Textile Mills Limited's robust financial performance in the face of challenging market conditions, underscored by strategic cost management and increased income from financial assets.