Lahore: Nishat Mills Ltd. (NML) has announced its financial results for the fourth quarter of fiscal year 2026, revealing improved profitability driven by increased exports and reduced finance costs. The company reported standalone earnings of PkR1.6 billion, equivalent to earnings per share (EPS) of PkR4.5, marking an 11% year-on-year increase from PkR1.1 billion (EPS: PkR3.3) reported in the same period last year. Additionally, the company declared a final cash dividend of PkR2.0 per share.

According to AKD Securities Limited, the company's revenue rose by 11% year-on-year to PkR48.3 billion (US$174 million), up from PkR43.5 billion (US$153 million) in the corresponding period of the previous year. This growth was primarily attributed to increased export volumes. However, the report noted a contraction in gross margins to 9.6% from 11.0% last year, due to lower prices in garment and home-textile exports.

Distribution expenses saw a year-on-year increase of 14%, reaching PkR2.4 billion. This rise was attributed to higher export volumes and increased freight charges. Despite these rising costs, AKD Securities Limited maintains a 'Buy' stance on NML, citing factors such as recovery in standalone textile earnings, declining finance costs amid lower interest rates, a significant discount to portfolio value, and improving growth prospects across its investment portfolio.