GATM slips to Rs339m loss in FY26

September 28, 2026 (MLN): Gul Ahmed Textile Mills Limited (PSX: GATM) reported a net loss of Rs338.55m for the consolidated fiscal year ended June 30, 2026, marking a complete bottom-line reversal from a net profit of Rs4.45bn in the preceding year.

Reflecting this bottom-line compression, consolidated basic and diluted loss per share (LPS) stood at Rs0.45, down from an earnings per share (EPS) of Rs6.01 in FY25.

Profit from continuing operations narrowed significantly to Rs611.83m (yielding a continuing EPS of Rs0.83) compared to Rs5.62bn in FY25, while discontinued operations posted a net loss of Rs950.37m (discontinued LPS of Rs1.28).

The primary factors weighing on operational performance were a 6% top-line contraction in revenue and a 26% reduction in gross margins.

Net revenue from contracts with customers fell to Rs162.01bn, down from Rs172.93bn in FY25. Although the cost of sales declined 2% to Rs138.17bn, gross profit compressed to Rs23.83bn compared to Rs32bn in the prior year.

On the operational front, overheads expanded slightly relative to total revenue.

Selling and distribution costs edged up to Rs11.17bn, administrative expenses grew 10% to Rs7.07bn, and other expenses declined 38% to Rs357.01m.

Operating cost pressures were partially cushioned by a 119% surge in "other income" (rising to Rs2.26bn from Rs1.03bn), though operating profit still dropped 62% to Rs5.24bn.

Below the operating line, GATM gained debt-servicing relief with finance costs falling 24% to Rs5.61bn (down from Rs7.37bn in FY25).

Combined with a 15% reduction in statutory levies (Rs1.34bn) and a net tax credit of Rs67.55m (compared to a tax expense of Rs409.09m in FY25), profit before loss from continued operations stood at Rs611.83m.

However, after absorbing a Rs950.37m loss from discontinued operations, Gul Ahmed Textile Mills Limited closed the fiscal year in the red with a final net loss of Rs338.55m.

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