⚡ Flash Summary

Idrees Textile Mills Limited reported a significant loss for the year ended June 30, 2025, with a net loss of PKR 394.77 million compared to a loss of PKR 191.48 million in the previous year. Revenue decreased from PKR 6.47 billion to PKR 5.20 billion. The company’s earnings per share (EPS) also declined, reporting a loss per share of PKR 19.88 compared to a loss of PKR 9.79 in the prior year. The decrease in revenue and increased losses raise concerns about the company’s operational efficiency and financial stability.

📌 Key Takeaways

• 📉 Revenue decreased by 19.61%, from PKR 6.47 billion in 2024 to PKR 5.20 billion in 2025.
• ⚠️ Net loss significantly increased to PKR 394.77 million in 2025 from PKR 191.48 million in 2024.
• 📉 Loss per share worsened, reporting a loss of PKR 19.88 in 2025 compared to a loss of PKR 9.79 in 2024.
• ❌ Cost of sales decreased, but not enough to offset the revenue decline, from PKR 5.84 billion to PKR 4.88 billion.
• ⚠️ Finance costs remained high at PKR 476.96 million, impacting profitability.
• ⬇️ Gross profit decreased substantially from PKR 618.59 million to PKR 318.29 million.
• 🔻 Operating profit shifted from a profit of PKR 432.03 million to a loss of PKR 180.59 million.
• ➡️ Total assets increased slightly from PKR 7.04 billion to PKR 7.63 billion, driven by an increase in current assets.
• ⬆️ Trade debts significantly increased from PKR 1.11 billion to PKR 1.67 billion, raising concerns about collection efficiency.
• 📊 Total liabilities increased from PKR 4.54 billion to PKR 5.48 billion, indicating increased financial leverage.
• ⚠️ Cash and bank balances increased significantly from PKR 8.61 million to PKR 88.97 million.
• ❌ Negative cash flow from operations of PKR 93.31 million compared to negative cash flow of PKR 412.19 million in the previous year.
• ⬆️ Increase in short-term borrowings from PKR 2.03 billion to PKR 2.06 billion, reflecting increased reliance on short-term debt.

🎯 Investment Thesis

Based on the current financial performance, a SELL recommendation is warranted. The company’s declining revenue, increased losses, and operational inefficiencies present significant challenges. A turnaround strategy is necessary, but until there are concrete signs of improvement, the investment outlook remains negative. The price target would be significantly lower than the current market price, reflecting the poor financial health and uncertain future prospects. Time horizon: Short-term (6-12 months).