⚡ Flash Summary

Kohinoor Mills Limited (KML) reported a decrease in turnover from PKR 29.85 billion in 2024 to PKR 27.14 billion in 2025. However, the company turned profitable, reporting a profit after tax of PKR 233.51 million in 2025 compared to a loss of PKR 19 million in 2024. Consequently, the earnings per share (EPS) improved from PKR -0.04 in 2024 to PKR 0.46 in 2025. The company is expanding its apparel division and focusing on renewable energy initiatives, which may drive future growth and cost efficiencies.

📌 Key Takeaways

• ☝️ Turnover decreased from PKR 29.85 Billion in 2024 to PKR 27.14 Billion in 2025.
• ✅ Turned profitable with PKR 233.51 Million profit after tax in 2025 vs. a PKR 19 Million loss in 2024.
• ⬆️ Earnings Per Share (EPS) increased from PKR -0.04 in 2024 to PKR 0.46 in 2025.
• 🏭 Expanding Apparel Division with Phase 1 projected revenue of USD 12M using current capacity.
• 🚀 Phase 2 Apparel Division targets USD 40M revenue with expanded capacity, requiring PKR 1B in upgrades.
• 🎯 Phase 3 Apparel Division aims for USD 72M revenue via double-shift operations, leveraging Phase 2 infrastructure.
• ☀️ Renewable Energy: 4.5 MW solar commissioned, aiming for 20% of total electricity demand.
• ♻️ Renewable Energy: Biomass thermal oil heater supplies 95% of energy from renewable sources.
• 📉 Gross Margin decreased from 14.22% in FY24 to 13.32% in FY25.
• ✨ Net Margin improved from -0.07% in FY24 to 0.86% in FY25.
• 🌍 Region-wise sales show Pakistan contributing 47% in 2025 compared to 44% in 2024.
• 🧵 Weaving division produced 53 million meters in 2024-25, up from 52 million in 2023-24.
• 🎨 Dyeing division produced 31 million meters in 2024-25, consistent with 2023-24.

🎯 Investment Thesis

KML presents a BUY opportunity due to its turnaround in profitability and strategic initiatives for future growth. While revenue declined, the company’s ability to turn a profit signals improved efficiency. The apparel division expansion and renewable energy investments are promising. I recommend a BUY rating with a price target of PKR 55, with a 12-18 month time horizon, based on projected earnings growth and sector multiples.