Karachi: The Textile and Finishing Mills Limited, a key player in the textile sector, reported a significant decrease in its revenue for the fourth quarter, ending June 30, 2026. According to the company's 69th annual report released on October 7, 2026, the quarter saw a 27.55% drop in sales revenue compared to the third quarter, a decline attributed to the ongoing USA-Iran war, raw material shortages, and rising fuel prices.

Despite these challenges, the company, which primarily produces and sells yarn, managed to navigate the tough environment effectively. The influx of duty-free imported yarn and the closure of borders with Afghanistan further compounded the difficulties faced by the domestic textile manufacturing sector. The company's management has been working to mitigate these impacts as they continue operations.

During the fiscal year, the company produced a total of 15.91 million kilograms of yarn, a notable increase from the previous year's production of 12.61 million kilograms. The core products include Polyester Viscose (PV), Pure Viscose (Staple Yarn), and Polyester-Cotton (PC) blended yarn.

The financial results for the year ending June 30, 2026, indicate revenue from contracts with customers netting 4.87 billion rupees, up from 4.35 billion rupees the previous year. However, the cost of goods sold amounted to 4.76 billion rupees, leading to a gross profit of 111.45 million rupees, down from the previous year's 153.58 million rupees. Other income rose to 152.55 million rupees from 107.15 million rupees, while distribution and marketing expenses increased to 36.73 million rupees.

Administrative expenses saw an increase to 124.51 million rupees, up from 117.48 million rupees, and other expenses rose significantly to 17.36 million rupees from 4.45 million rupees. The finance cost decreased to 90.40 million rupees from 150.34 million rupees in the previous year.

According to information available from the Pakistan Stock Exchange (PSX), the company's loss before revenue tax and income tax was 4.99 million rupees, a minor move compared to the previous year's loss of 42.05 million rupees. Revenue tax accounted for 31.94 million rupees, resulting in a loss before income tax of 36.93 million rupees. After accounting for income tax of 5.65 million rupees, the company reported a loss of 42.58 million rupees for the year, a moderate move from the previous year's loss of 69.83 million rupees. The loss per share improved from 87.29 rupees to 53.23 rupees.

The textile sector, particularly the spinning segment, remains under pressure due to ongoing geopolitical and economic challenges, as reflected in the company's financial performance.