Lower borrowings and renewable-energy investment provided relief, but falling revenue and manufacturing profitability pushed the group into loss.
Gul Ahmed Textile Mills recorded a consolidated net loss of approximately Rs339 million for the year ended June 30, 2026, reversing a Rs4.45 billion profit a year earlier. Group revenue declined 6.3% to Rs162 billion, while gross profit fell to Rs23.8 billion from Rs32 billion, according to Profit’s October 5 review of the results.
Manufacturing margins contract sharply
Consolidated operating profit dropped 62% to Rs5.24 billion. At the standalone listed company, sales declined to Rs129.7 billion from Rs145.3 billion, while gross margin narrowed from approximately 13% to 7.7%. The standalone business reported a Rs923 million loss after discontinued operations, compared with a Rs4.02 billion profit previously.
The distinction between group and standalone results matters: consolidated accounts include subsidiaries, providing a broader picture than the textile company alone.
Apparel exit contributes to lower sales
Gul Ahmed’s March 2026 directors’ report attributed its nine-month sales decline of 16.3% partly to the closure of its apparel segment and reduced spinning sales. Management also identified cheaper imported yarn and flood-related disruption as pressures on operations.
For that nine-month period, direct export sales declined 11.6% in dollar terms and 10.8% in rupees. Indirect exports fell 42%, while domestic sales increased 14%. These interim figures describe conditions through March rather than the full financial year.
Debt reduction and energy projects offer relief
Year-end consolidated short-term borrowings fell to Rs44.3 billion from Rs56.1 billion. Consolidated finance costs consequently declined to Rs5.61 billion from Rs7.37 billion, cushioning the earnings deterioration.
By March, the company had commissioned 20 MW of solar generation and 6.8 MWh of battery storage. Its directors also outlined additional solar, battery and wind projects, alongside relocation to Nooriabad; those announced schedules do not confirm subsequent completion.
Looking ahead, FY2027 results will indicate whether restructuring, reduced financing costs and renewable generation translate into stronger margins. Recovery will depend on profitability in the retained businesses as well as improved export performance.
