Karachi: Towellers Limited, a stalwart in Pakistan's textile manufacturing sector, shared insights into its financial performance during its 2025 corporate briefing session, amid a fluctuating global and local textile landscape. The global textile market is projected to reach $2,123.7 billion in 2025, expanding at a compound annual growth rate of 7.35% to an estimated $4,016.5 billion by 2034.
In 2025, Pakistan's textile and apparel exports saw a 7.22% rise, reaching $17.88 billion, significantly contributing 55.7% to the nation's total exports. The textile industry forms 46% of the total manufacturing sector and employs 45% of the labor force. However, only 5% of the textile companies are listed on the stock exchange. According to information available from the Pakistan Stock Exchange (PSX), Pakistan is the fourth-largest cotton producer and third-largest consumer in Asia, underscoring the sector's critical role in the economy.
Towellers Limited, which has been operational since 1973, reported a slight decline in revenue growth, with revenue in US dollars decreasing by 0.13% to $44.42 million in 2025 from $44.48 million the previous year. The company's revenue in Pakistani Rupees showed a minor move, increasing by 0.26% to PKR 12,347.00 million.
The company's profit after tax (PAT) experienced a very large decline of 76.6%, plummeting to PKR 286.71 million from PKR 559.50 million. This was reflected in the net profit percentage, which saw a significant move downward to 2.32% from 7.03% in the previous year. The earnings per share (EPS) also dropped to 16.87 from 32.91.
The export market, particularly in Europe and North America, remains vital for Towellers Limited, despite challenges such as rising production costs and energy expenses in Pakistan. The company maintains a robust export footprint and a vertically integrated production process, enhancing its market reliability and product quality.
In the broader industry context, Pakistan's textile group exports from July to October 2025 increased by 3.9% to $6.39 billion. October alone saw a 2.5% growth in textile exports compared to September, although there was a 0.61% decline compared to October 2024. The lower tariffs on Pakistani textile products in the US market, currently at 19%, have bolstered the country's competitive edge, yet challenges such as high energy costs persist.
Towellers Limited continues to leverage its strong financial position and market expertise. The company operates at 80% of its manufacturing capacity, producing approximately 20 million pieces of knitted apparel and towels annually. However, the dependency on a few major customers and increasing production costs pose potential risks to its profitability and competitiveness.
As the global textile market evolves, Towellers Limited remains poised to navigate these changes, drawing on its five-decade-long experience and comprehensive manufacturing capabilities to sustain growth and meet international standards.