Karachi: Gul Ahmed Textile Mills Limited has announced its financial results for the fiscal year ended June 30, 2025, showcasing record turnover figures and strategic initiatives in response to global economic and domestic challenges. The company’s annual report, released on October 20, 2025, underscores its resilience and strategic foresight in navigating a complex market environment.
For the fiscal year 2024-25, Gul Ahmed Textile Mills reported a turnover exceeding USD 550 million, marking the highest in its history despite facing volatile demand. The company attributed this achievement to improved export competitiveness, enhanced by currency stability and trade facilitation. Export performance strengthened in core markets such as the U.S. and EU, driven by targeted high-value products.
The company’s operational performance was marked by improved capacity utilization and lean process initiatives, which helped offset part of the escalating energy costs. Furthermore, the commissioning of an 18.2 MW solar capacity was a significant step toward reducing long-term energy costs and carbon footprint.
According to information available from the Pakistan Stock Exchange (PSX), Gul Ahmed’s export revenue in USD grew by 4.07% to USD 383.6 million, while net sales increased by 10.31% to PKR 157.9 billion. This growth, however, came with challenges as the company’s profitability was impacted by pricing pressures, geopolitical instability, and fluctuating energy prices. The gross profit margin remained at 12%, reflecting proportional growth in the cost of sales.
The textile sector in Pakistan, as a whole, demonstrated resilience with a 7.39% export growth in FY24-25, driven by a shift from commodities to value-added products. However, the sector faces challenges such as raw material price volatility and increased energy costs, which continue to pressure margins and operational efficiency.
Gul Ahmed’s management has outlined a strategic focus on expanding high-value home textiles, accelerating renewable energy projects, and investing in automation to enhance efficiency and quality. The company plans to meet over 50% of its power needs through renewable sources by 2027, with a target of 90% by 2030. Additionally, the decision to discontinue the export apparel segment reflects a strategic realignment toward business areas with stronger growth potential.
In terms of financial metrics, Gul Ahmed’s gross profit rose by 10.39%, while profit before tax and profit after tax decreased by 13.42% and 14.91%, respectively. The company’s earnings per share declined from Rs. 6.39 to Rs. 5.44. Shareholder equity saw a 9.2% increase, rising from Rs. 44.75 billion to Rs. 48.85 billion, supported by a profit of Rs. 4.02 billion.
The company’s financial strategy included proactive measures to manage energy costs and enhance sustainability, with plans to expand solar capacity and explore wind energy options. Despite an increase in borrowings, Gul Ahmed maintained stable finance costs, leveraging lower-cost financing facilities.
Overall, Gul Ahmed Textile Mills remains committed to delivering sustainable value, with a strong governance framework and strategic initiatives aimed at navigating a dynamic global market landscape.