⚡ Flash Summary

Kohat Textile Mills Limited reported its financial results for the quarter ended September 30, 2025. The company’s net sales increased slightly to PKR 2,004.42 million from PKR 1,928.96 million in the same quarter last year. Profit after taxation stood at PKR 114.89 million compared to PKR 79.09 million in the prior year, representing a significant increase. Basic and diluted earnings per share (EPS) also improved from PKR 3.80 to PKR 5.52.

📌 Key Takeaways

• 📈 Sales increased to PKR 2,004.42 million from PKR 1,928.96 million YoY.
• 💰 Gross profit rose to PKR 345.47 million from PKR 316.30 million YoY.
• 🚀 Profit from operations surged to PKR 260.63 million from PKR 243.04 million YoY.
• 💸 Finance costs decreased to PKR 106.93 million from PKR 139.03 million YoY.
• 📊 Profit before taxation improved to PKR 128.65 million from PKR 79.90 million YoY.
• ✅ Profit after taxation climbed to PKR 114.89 million from PKR 79.09 million YoY.
• ⭐ Earnings per share (EPS) increased to PKR 5.52 from PKR 3.80 YoY.
• 🏦 Cash generated from operating activities increased to PKR 238.08 million from PKR 139.67 million YoY.
• 💸 Net cash used in investing activities decreased to PKR (151.23) million from PKR (338.70) million YoY.
• 📉 Net cash used in financing activities amounted to PKR (52.87) million versus net cash generated of PKR 218.34 million YoY.
• 💵 Cash and cash equivalents at the end of the period increased to PKR 16.93 million from PKR 11.11 million YoY.
• 🌱 Revenue reserve increased to PKR 1,530.42 million from PKR 1,410.29 million since June 30, 2025.
• 💪 Total equity increased to PKR 4,721.60 million from PKR 4,606.71 million since June 30, 2025.
• ✔️ Long term financing increased to PKR 1,119.80 million from PKR 939.35 million since June 30, 2025.

🎯 Investment Thesis

Given the improved financial performance, particularly the increase in profit after taxation and EPS, a BUY recommendation is warranted. The company has shown improved operational efficiency and effective tax management. A potential price target can be set based on future earnings projections, taking into account industry averages and growth prospects. Monitor financial leverage due to long term financing. The time horizon for realizing the investment potential is MEDIUM_TERM, assuming the company sustains its performance and macroeconomic conditions remain favorable.