Karachi: Gul Ahmed Textiles Mills Ltd. (GATM) announced its financial results for FY26 and 1QFY27, revealing a significant downturn compared to the same period last year. The company reported a loss of PKR0.9 billion, a stark contrast to the PKR4.0 billion profit recorded in the previous year, largely attributed to shrinking gross margins.

According to AKD Securities Limited, the company experienced a 17% year-on-year decline in sales, reporting PKR131.1 billion for FY26 compared to PKR157.9 billion in the prior year. This downturn was primarily due to the discontinuation of its export apparel segment, which previously contributed approximately PKR13.2 billion in sales, and a reduction in yarn sales following a six-month curtailment of spinning operations caused by local market uncertainties.

Gul Ahmed's gross margins fell to 7.3% in FY26, down from 12.0% in the previous year. The decline was mainly driven by increased energy costs. The briefing highlighted the company's future outlook amidst these challenges.