⚡ Flash Summary

Idrees Textile Mills Limited’s report for the quarter ended September 30, 2025, shows a decrease in revenue but improved gross profit compared to the same period last year. Revenue decreased to Rs. 935 million from Rs. 1,244 million, while gross profit increased to Rs. 113 million from Rs. 34 million. The company reported a loss of Rs. 13.9 million, significantly lower than the loss of Rs. 163.2 million in the corresponding period last year. The loss per share also improved, decreasing to Re. 0.70 from Rs. 8.22. The company noted challenges in the textile sector due to raw material price volatility and high energy costs.

📌 Key Takeaways

• 📉 Revenue decreased to Rs. 935 million from Rs. 1,244 million year-over-year (YoY).
• ⬆️ Gross profit increased significantly to Rs. 113 million from Rs. 34 million YoY.
• ⬇️ Finance costs reduced by Rs. 57 million, from Rs. 149 million to Rs. 92 million YoY.
• ✅ Loss for the period improved, decreasing to Rs. 13.9 million from Rs. 163.2 million YoY.
• ✅ Loss per share improved to Re. 0.70 from Rs. 8.22 YoY.
• ⬆️ Gross margin improved compared to the same quarter last year.
• ⬇️ Finance cost declined by 38% due to reduction in Policy Rate by the State Bank of Pakistan.
• ⚠️ High cost of energy and other inputs continue to impact production costs.
• Government intervention is needed to reduce financial strain and ensure sector sustainability.
• ✅ Stability in the policy framework is crucial for the textile industry’s viability.
• ⚠️ Textile sector dynamics remain challenging due to raw material price volatility.
• Management is focused on optimizing operational efficiency and minimizing production costs.
• Government reforms in taxation and energy tariffs are urgently required.
• The company remains committed to drive growth and ensure long-term value.
• The company expresses gratitude for the trust and support of stakeholders.

🎯 Investment Thesis

HOLD. While the company has shown signs of improvement in gross profit and loss reduction, the decrease in revenue and ongoing challenges in the textile sector warrant a cautious approach. The company needs to demonstrate consistent profitability and effective cost management before considering a more positive recommendation. Price Target: Rs 15. Time Horizon: 12 months. Reason: ITML must turn a profit and create a stable balance sheet to become an attractive stock. Its price has been extremely volatile, and it must become stable for long-term gains.