LAHORE: Nishat Mills Ltd. (NML) has reported a 22% decrease in its profitability for the third quarter of fiscal year 2026, attributed to shrinking gross margins and reduced other income. The company’s standalone earnings fell to PkR545 million, translating to an earnings per share (EPS) of PkR1.6, compared to PkR696 million (EPS: PkR2.0) during the same period last year.

According to AKD Securities Limited, revenue for the quarter increased by 3% year-on-year to PkR46.4 billion, driven by higher exports following the inclusion of the Denim and Workwear segments. However, the gross margin decreased to 9.1% from 10.4% in the same period last year, primarily due to negative margins from these new segments amid ramp-up losses. Distribution expenses rose by 2% year-on-year to PkR2.1 billion due to higher volumes, while other income saw a decline of 19% to PkR1.5 billion, attributed mainly to the absence of a dividend from the power subsidiary, NPL.