Lahore: The Board of Directors of Zahidjee Textile Mills Limited announced the company’s un-audited financial results for the quarter ending September 30, 2026, revealing a significant sales increase amidst ongoing challenges in the global textile industry. The report, dated October 29, 2026, highlights the company's resilience in a period marked by geopolitical uncertainties and fluctuating market demands.
During the first quarter, Zahidjee Textile Mills Limited reported sales of Rs. 10.78 billion, marking a 14.74% increase from Rs. 9.40 billion in the same period last year. Gross profit also experienced a moderate move upward, increasing by 3.42% to Rs. 816.14 million from Rs. 789.17 million. Despite the challenging economic backdrop, the company managed to earn a net profit of Rs. 594.05 million, a notable big move of 22.52% compared to Rs. 484.85 million in the previous year. This resulted in an improvement in earnings per share, which rose to Rs. 3.10 from Rs. 2.53.
The improvement in the company’s profitability was primarily driven by higher sales and an increase in other income to Rs. 287.70 million from Rs. 267.20 million. Notably, finance costs declined to Rs. 191.84 million from Rs. 228.55 million, aiding the company's overall financial performance. According to information available from the Pakistan Stock Exchange (PSX), levies decreased to Rs. 30.02 million from Rs. 52.09 million, and the provision for taxation declined to Rs. 72.15 million from Rs. 112.44 million, further supporting the increase in net profit despite elevated administrative and other operating expenses.
As of September 30, 2026, the company’s property, plant, and equipment valuation decreased to Rs. 18.09 billion from Rs. 18.39 billion as of June 30, 2026, primarily due to depreciation and other adjustments. Trade and other payables increased to Rs. 4.59 billion from Rs. 4.20 billion at the end of the previous fiscal year. Long-term finance, including its current portion, decreased to Rs. 1.11 billion from Rs. 1.18 billion, reflecting repayments made during the period.
Interest and markup payable rose to Rs. 134.32 million from Rs. 92.73 million, while short-term borrowings increased to Rs. 6.16 billion from Rs. 5.05 billion. Cash and bank balances improved significantly to Rs. 5.70 billion from Rs. 5.06 billion, enhancing the company’s liquidity. Overall, the company’s net worth increased to Rs. 23.33 billion as of September 30, 2026, up from Rs. 22.73 billion at the end of June 2026, reflecting a positive change in its equity position.
The textile sector in Pakistan continues to grapple with subdued global demand, geopolitical tensions, and uncertainties in international trade, all of which have pressured export growth and intensified competitive challenges. Domestically, issues such as increased energy tariffs, supply chain disruptions, and climate-related fluctuations in cotton production have further strained the industry. Rising labor costs and a stringent tax regime have also impacted manufacturers' profit margins, underscoring the need for policy support and improved export competitiveness.