Envoy Textiles Limited recorded a significant improvement in its financial performance in the first quarter of the fiscal year 2026-27, with net profit increasing 40% year-on-year to Tk53.13 crore, mainly driven by stronger export earnings and reduced borrowing costs.

The company’s earnings per share (EPS) stood at Tk3.17 for the July-September quarter of 2026, compared with Tk2.26 in the corresponding period of the previous fiscal year, according to its unaudited financial statements.

The denim manufacturer generated revenue of Tk519.21 crore during the quarter, marking a 10.51% increase from Tk469.82 crore recorded in the same quarter of FY26.

The rise in revenue was largely supported by stronger net export sales, which increased by Tk49.38 crore. However, yarn export sales declined by Tk15.94 crore during the period.

The company’s gross profit also showed an upward trend, reaching Tk102.92 crore against Tk91.26 crore in the July-September quarter of the previous fiscal year.

Despite changes in production costs, the company managed to improve its gross profitability through better control of factory overheads and a slight reduction in the cost of goods sold as a proportion of revenue.

Another major contributor to the improved bottom line was the decline in financial expenses. Total finance costs dropped 17.63% to Tk29.15 crore during the quarter, compared with Tk35.39 crore a year earlier.

According to the company, the reduction was mainly attributable to the replacement of relatively expensive local borrowings with lower-cost financing from the Asian Development Bank (ADB), helping reduce its overall financing burden.

The company’s cash flow position also strengthened during the reporting period. Net operating cash flow per share (NOCFPS) increased to Tk5.19 from Tk3.67 in the corresponding quarter of the previous year.

The improvement in operating cash flow was supported by favourable movements in trade payables and materials in transit.

Meanwhile, the company’s net asset value per share (NAVPS) increased to Tk63.49 as of September 30, 2026, from Tk60.33 at the end of June 2026, indicating an improvement in its per-share asset position.