Lahore: Kohinoor Textile Mills Ltd (KTML) reported an 18% increase in earnings for the fiscal year 2026, largely driven by reductions in power and finance costs, according to a recent corporate briefing. The company's consolidated earnings rose to Rs19.9 billion, translating into an earnings per share (EPS) of Rs14.77 for the year.

According to JS Global, the briefing highlighted several factors contributing to KTML's financial performance. A decrease in power charges by 9% and a 52% reduction in finance costs were significant contributors to the earnings growth. The company also experienced a rise in consolidated revenue, bolstered by stronger contributions from its subsidiaries. The total energy requirement for the company remained stable at 24.41 MWh, with 74.5% sourced from the national grid as electricity rates fell to Rs32.7 per kilowatt-hour.

The home textile segment emerged as the strongest performer, with a revenue increase of 6% and an improvement in gross margins to 22.5% from 19.9% in the previous year. In contrast, the spinning and weaving segments saw declines in revenue by 4% and 6% respectively. KTML has been strategically shifting its export focus towards Europe, which now accounts for 56% of exports, up from 50% the previous year. This shift is part of the company's strategy to target European brands requiring specialized labor skills, which offer higher margins compared to US retail brands.

KTML is also optimizing energy costs through a 48.36 MW Battery Energy Storage System (BESS) and an additional 9.34 MW solar plant, aiming for cost savings of approximately Rs600 million. With the anticipated completion of this project by December 2026, the company expects solar power to constitute 32% of its energy mix, up from the current 23%. The management forecasts a revenue growth of 3-5% for FY27, with stable margins in the core business.