April 30, 2026 (MLN): Gul Ahmed Textile Mills Limited (PSX: GATM) swung to a loss after taxation of Rs118.21m for the nine months ended March 31, 2026, compared to a profit of Rs2.33bn in the corresponding period last year, showing a significant deterioration in the overall earnings base.

The company's basic and diluted earnings per share (EPS) turned negative to Rs0.16 loss per share, reversing a profit of Rs3.14 per share in 9MFY25, reflecting meaningful value erosion for shareholders during the period.

GATM's net sales declined 10.39% to Rs125.31bn from Rs139.84bn. Cost of sales contracted at a lesser pace of 8.13% to Rs108.26bn, failing to fully absorb the revenue shortfall.

This resulted in gross profit contracting by 22.49% to Rs17.05bn from Rs22.00bn, compressing the earnings foundation from the outset.

Selling and distribution costs declined marginally by 1.16% to Rs7.95bn while administrative costs rose a contained 3.96% to Rs5.21bn.

Other operating costs declined sharply by 58.26% to Rs162.34m, providing some relief. Despite this, operating profit declined by 46.04% to Rs5.35bn from Rs9.91bn.

Other income grew 19.25% to Rs1.62bn, partially cushioning the operational decline.

Finance costs declined by 25.94% to Rs4.61bn from Rs6.22bn, providing a meaningful tailwind. However, profit before levies and income tax still contracted sharply by 79.94% to Rs740.17m from Rs3.69bn.

A levy reversal of Rs313.83m, compared to a charge of Rs1.31bn in the prior year, provided critical relief and lifted profit before income tax to Rs1.05bn, a 55.71% decline from Rs2.38bn.

The decisive bottom-line driver, however, was a taxation charge of Rs1.17bn against a marginal charge of Rs53.47m in the prior year, which entirely wiped out pre-tax earnings and pushed the company into a net loss position.

After accounting for taxation, Gul Ahmed Textile Mills Limited closed the nine-month period with a loss after taxation of Rs118.21m, compared to a profit of Rs2.33bn reported in the corresponding period of last year.