Karachi: Gul Ahmed Textile Mills Limited, a key player in the textile sector, disclosed its financial performance for the fiscal year ending October 6, 2025, showcasing a diverse pattern of growth and challenges. The company reported a notable increase in local sales but faced a decline in overall profitability.
The textile giant recorded total sales of Rs. 157,905 million, reflecting a 10.31% increase from the previous year’s Rs. 143,145 million. This growth was primarily driven by local sales, which surged by 26.47% from Rs. 11,711 million to Rs. 14,811 million, classified as a very large or significant move. Export sales also saw a moderate move with a 6.45% rise, reaching Rs. 105,815 million compared to Rs. 99,403 million in the previous period.
However, the company’s profitability metrics did not mirror the sales growth. The gross profit increased by 10.39%, totaling Rs. 18,978 million, but the profit before tax decreased by 13.42% to Rs. 5,660 million. The net profit after tax fell by 14.91%, amounting to Rs. 4,023 million, while EBITDA showed a minor move with a decrease of 0.75%, resulting in Rs. 16,312 million.
According to information available from the Pakistan Stock Exchange (PSX), the earnings per share also experienced a significant decline of 14.87%, dropping from Rs. 6.39 to Rs. 5.44. This downturn in earnings indicates potential challenges in managing operational costs amidst rising sales figures.
The company’s board of directors is composed of seasoned professionals, including Mr. Ziad Bashir, a non-executive director with extensive experience in the textile industry. Mr. Bashir has been a board member since 1999, contributing to various industry and trade organizations. Alongside, Mr. Ehsan A. Malik and Ms. Zeeba Ansar, both non-executive directors, bring a wealth of knowledge from their respective backgrounds in corporate governance and banking.
Gul Ahmed’s financial results also highlighted a mixed performance in its product categories within the designated market category. While readymade garments and knitwear products showed a significant move with increases of 15.85% and 13.68% respectively, cotton yarn experienced a substantial decrease of 28.76%.
The company’s financial ratios reflected the impact of these results. The return on equity decreased to 8.60% from 11.15% the previous year, and the net profit to sales ratio fell to 2.55% from 3.30%. Despite these challenges, the company maintained a stable current ratio of 1.13, indicating a steady liquidity position.
In the context of market value, the share price at the end of the fiscal year was Rs. 27.47, up from Rs. 21.10 the previous year, suggesting investor confidence despite the decline in profitability. As Gul Ahmed continues to navigate the complexities of the textile market, its strategic focus on expanding local sales could be pivotal in reversing the downward trend in profitability.