⚡ Flash Summary

Dewan Textile Mills Limited reported a loss for the quarter ended September 30, 2025. The company’s revenue decreased compared to the same period last year, leading to continued losses. While the company managed to slightly reduce its loss per share, challenges remain in achieving profitability. No dividends or bonus shares were recommended by the board, indicating financial constraints.

📌 Key Takeaways

• 📉 Revenue decreased to (30,394,742) Rupees from (35,610,995) Rupees YoY.
• ❌ Gross loss remained significant at (30,394,742) Rupees.
• 💼 Operating loss increased to (33,107,788) Rupees from (37,512,688) Rupees YoY.
• 💸 Finance costs increased slightly to (7,237,108) Rupees from (6,875,797) Rupees YoY.
• 💰 Other income increased to 7,350,000 Rupees from 6,450,000 Rupees YoY.
• ⚠️ Loss before taxation improved slightly to (32,994,896) Rupees from (37,938,485) Rupees YoY.
• 💲 Taxation credit decreased to 5,074,508 Rupees from 5,742,467 Rupees YoY.
• 💔 Net loss for the period improved slightly to (27,920,388) Rupees from (32,196,018) Rupees YoY.
• 📉 Loss per share decreased to (0.61) Rupees from (0.70) Rupees YoY.
• 🏦 No cash dividend or bonus shares were recommended.
• 😟 Accumulated losses worsened to (6,333,935,581) Rupees from (6,318,438,987) Rupees since June 30, 2025.
• 📉 Cash and bank balances decreased to 3,322,867 Rupees from 3,513,037 Rupees since June 30, 2025.

🎯 Investment Thesis

Given the declining revenue, persistent losses, and challenging financial position, a SELL recommendation is warranted for Dewan Textile Mills. There are few indicators that the company can turn around its performance in the near term. The lack of dividends and increasing accumulated losses make it an unattractive investment.