Profits of Pakistan’s top 20 listed textile companies rose 11 percent year-on-year to Rs. 51.9 billion in fiscal year 2026, driven by lower finance costs and a decline in effective tax rates, according to Topline Securities.
The companies generated combined sales of Rs. 1.4 trillion, equivalent to around $5 billion, largely unchanged from the previous year. The 20 companies account for 83 percent of the total market capitalization of the selected listed textile sector.
The effective tax rate of the companies fell to 33.2 percent in FY26 from 37.1 percent a year earlier, mainly due to reversals of deferred tax liabilities following changes in the future super tax treatment of exporters.
Meanwhile, finance costs declined 19 percent year-on-year to Rs. 54.5 billion, which Topline attributed primarily to lower financing rates and reduced borrowings under the Export Finance Scheme.
Gross margins remained stable at 13.1 percent, while gross profit and sales declined 0.2 percent and 0.3 percent, respectively.