Lahore: Nishat Mills Ltd. (NML) has reported a significant increase in its first-quarter fiscal year 2027 earnings, driven by higher export volumes and improved margins. The company announced standalone earnings of PKR 1.6 billion, or PKR 4.5 per share, marking a twofold increase compared to PKR 772 million, or PKR 2.2 per share, reported during the same period last year.

According to AKD Securities Limited, the company's performance surpassed expectations due in part to the non-recognition of an anticipated PKR 2.0 billion loss on the disposal of Nishat Sutas and higher-than-expected gross margins. Revenue for the quarter grew by 16 percent year-over-year to PKR 52.4 billion, up from PKR 45.0 billion in the corresponding period last year. This growth was largely attributed to increased export volumes.

The company's gross margins rose to 12.1 percent from 11.0 percent in the same period last year, supported by reduced ramp-up losses in its denim and workwear segments, which benefitted from improved capacity utilization. However, distribution expenses also saw a notable increase, rising by 33 percent year-over-year to PKR 2.9 billion, a reflection of higher volumes and escalating freight charges.