Ashnoor Textile Mills reported a 46.85% decline in net profit after tax (PAT) for the financial year ended March 31. The textile manufacturer attributed the decline primarily to unprecedented tariff-related disruptions affecting its exports to the United States, its principal export market. Operating income contracted by 36.34% to Rs 113.61 crore (US $12.02 million).
Despite the challenging external environment, the company maintained adequate liquidity and exercised disciplined cost control during the year. The Board of Directors did not recommend a dividend for FY26, choosing instead to retain earnings to support future growth and strengthen the company’s ability to navigate continued trade volatility.
The decline in profitability was broad-based. Operating income fell from Rs 178.48 crore (US $18.89 million) in FY25 to Rs 113.61 crore (US $12.02 million) in FY26. Other income also declined by nearly half, falling from Rs 5.70 crore (US $0.60 million) to Rs 2.79 crore (US $0.30 million). As a result, total income stood at Rs 116.40 crore (US $12.32 million), compared with Rs 184.17 crore (US $19.49 million) in the previous financial year.
Profit before tax declined by 47.46% to Rs 10.77 crore (US $1.14 million) from Rs 20.50 crore (US $2.17 million) in FY25. Net profit after tax stood at Rs 8.48 crore (US $0.90 million), compared with Rs 15.96 crore (US $1.69 million) a year earlier.
Export realisations on a Free On Board (FOB) basis declined to Rs 81.70 crore (US $8.65 million) from Rs 90.29 crore (US $9.56 million) in FY25. However, the company’s net foreign exchange earnings remained relatively robust at Rs 79.75 crore (US $8.44 million), supported by lower foreign currency expenditure on stores, spares and travel.
Despite the sharp fall in revenue, the company managed to marginally improve its operating profit ratio to 14.79%, compared with 13.55% in the previous year. This indicates that disciplined expense management and lower variable costs helped cushion the impact of reduced production and sales volumes. The improvement also suggests that the company was able to maintain operating efficiency despite the challenging export environment.
Looking ahead, management expects FY27 to be comparatively better as the market absorbs the initial impact of tariff-related disruptions.
The company anticipates a gradual normalisation of export flows and a recovery in operating margins, supported by its established export capabilities and strong financial position. However, the pace of recovery will depend largely on developments in US trade policies and the broader global demand environment.
