⚡ Flash Summary

Kohinoor Textile Mills Limited (KTML) reported its unaudited financial results for the quarter ended September 30, 2025. The consolidated statement shows a revenue increase to PKR 31,860.48 million from PKR 30,857.92 million in the same quarter last year. Profit after taxation significantly increased to PKR 13,851.69 million compared to PKR 3,023.67 million. Basic and diluted earnings per share (EPS) also saw a substantial rise, reaching PKR 8.11, up from a restated PKR 1.67 last year.

📌 Key Takeaways

• 📈 Revenue increased by 3.25% YoY, from PKR 30,857.92 million to PKR 31,860.48 million.
• 💰 Gross profit increased by 9.60% YoY, from PKR 7,497.40 million to PKR 8,216.94 million.
• 📉 Distribution costs decreased by 23.04% YoY, from PKR 1,874.00 million to PKR 1,443.61 million.
• 📉 Administrative expenses increased by 50.21% YoY, from PKR 1,200.81 million to PKR 1,803.70 million.
• 📉 Finance costs decreased by 31.0% YoY, from PKR 1,598.99 million to PKR 1,103.86 million.
• 🚀 Profit before taxation increased significantly by 309.11% YoY, from PKR 4,316.45 million to PKR 17,662.08 million.
• 🚀 Profit after taxation increased significantly by 358.84% YoY, from PKR 3,023.67 million to PKR 13,851.69 million.
• ⭐ Basic and diluted earnings per share (EPS) increased significantly from PKR 1.67 to PKR 8.11.
• 🏦 Total equity increased from PKR 106,318.24 million to PKR 121,627.01 million.
• 💸 Cash generated from operations increased significantly from PKR 2,516.73 million to PKR 16,752.71 million.
• 🚫 No cash dividend, bonus shares, or right shares were declared for the quarter.
• 📊 Unconsolidated profit after taxation increased from PKR 517.59 million to PKR 664.81 million.
• 📉 Unconsolidated finance costs decreased from PKR 724.81 million to PKR 326.50 million.

🎯 Investment Thesis

Based on the strong Q1 2026 results, I recommend a BUY with a target price of PKR 100 and a medium-term time horizon. The significant improvements in profitability, EPS, and cash flow generation indicate strong growth potential. However, investors should monitor the risks associated with the textile sector, particularly those related to regulation and market conditions. The growth is exceptional given only a small growth in sales, with the primary effect of higher profits coming from significantly lower financing costs.