Gul Ahmed Textile Mills reports Rs131.09 billion in net sales as its transformation plan, including the exit from Export Apparel, weighs on annual earnings.
Gul Ahmed Textile Mills Limited reported a loss after tax of Rs923 million for the financial year ended June 30, 2026, compared with a profit of Rs4.023 billion in the preceding year, as challenging global market conditions and business transformation measures affected its financial performance.
In his Chairman’s Review, Mohomed Bashir described FY2026 as a demanding year, highlighting rising energy costs, changing international sourcing patterns, cautious retail demand and pressure on realised prices.
The company recorded net sales of Rs131.09 billion during the year. However, the chairman said the financial outcome partly reflected decisions taken under the company’s transformation plan, including its exit from Export Apparel, which were intended to strengthen the balance sheet and improve the quality of its business over the longer term.
Despite the annual loss, continuing operations remained profitable before tax, while borrowings and finance costs declined materially. The share of domestic sales increased to 13.3% from 9.4% in the previous year.
The company’s strategy centres on three priorities: transitioning to its own renewable power, consolidating production at Nooriabad and developing new business lines with higher margins. The board expects these initiatives to reduce the cost base progressively from FY2027, provided implementation remains on schedule and within budget.
The chairman also cited elevated energy costs, higher interest rates, duties on imported raw materials and delays in tax refunds as continuing challenges for the textile sector.
Pakistan’s textile and clothing exports remained flat at $17.93 billion during the year, according to the review. The chairman also noted that domestic economic growth recovered to 3.7%, while inflation rose to 7.05% and the policy rate reached 11.5% towards the financial year’s close.
Alongside its business operations, Gul Ahmed continued its social contributions, including support for The Indus Hospital and The Citizens Foundation, as well as initiatives involving women’s empowerment, environmental conservation and community development.
The board’s annual performance evaluation produced satisfactory results, while elections held on March 31, 2026, returned all retiring members, ensuring continuity in governance.
Bashir said the company entered the new financial year with a disciplined strategy, a stronger balance sheet and confidence in its path towards restored profitability.