⚡ Flash Summary

Zephyr Textiles Limited reported its unaudited financial results for the quarter ended September 30, 2025. The company’s sales decreased from PKR 2,178.26 million in 2024 to PKR 1,961.93 million in 2025. The company’s profit after tax increased from a loss of PKR -35.37 million to a profit of PKR 9.41 million. The basic earnings per share (EPS) also improved significantly from a loss of PKR -0.60 to earnings of PKR 0.16.

📌 Key Takeaways

• 📉 Sales declined by 10% YoY, from PKR 2,178.26 million to PKR 1,961.93 million.
• 💰 Gross profit increased by 11.4% from PKR 209.82 million to PKR 233.70 million.
• ⚠️ Operating expenses decreased from PKR 163.42 million to PKR 144.39 million, showcasing improved efficiency.
• 📈 Other operating income decreased significantly from PKR 35.03 million to PKR 8.14 million.
• 🏢 Operating profit increased by 21.6% from PKR 70.19 million to PKR 85.34 million.
• 💸 Financial and other charges decreased from PKR 82.55 million to PKR 54.05 million, impacting profitability.
• 📊 Profit before tax improved significantly from a loss of PKR 12.35 million to a profit of PKR 31.29 million.
• ✅ Provision for tax decreased from PKR 23.02 million to PKR 21.88 million.
• 🌟 Profit after tax improved from a loss of PKR 35.37 million to a profit of PKR 9.41 million.
• ⬆️ Un-appropriated profit brought forward increased from PKR 1,493.87 million to PKR 1,523.65 million.
• 🔄 Current year incremental depreciation decreased from PKR 7.64 million to PKR 6.87 million.
• ✅ Un-appropriated profit carried forward increased from PKR 1,466.13 million to PKR 1,539.93 million.
• 🚀 Earnings per share (EPS) increased from negative PKR 0.60 to positive PKR 0.16.

🎯 Investment Thesis

Based on the current data, a HOLD recommendation is appropriate. The company has shown improvements in profitability and efficiency, but the decline in sales is a concern. A more in-depth analysis of the company’s strategic initiatives and market conditions is needed to determine a clear BUY or SELL recommendation. The price target should be based on future earnings potential and industry benchmarks, with a medium-term horizon of 6-12 months.