⚡ Flash Summary

J.A. Textile Mills Limited reported a net loss of PKR 7.18 million for the quarter ended September 30, 2025, compared to a net loss of PKR 30.60 million in the same quarter last year. Sales increased significantly to PKR 487.19 million from PKR 139.49 million year-over-year, but cost of sales also rose substantially. The company’s accumulated losses continue to weigh on its equity position. No cash dividend, bonus shares, or right shares were recommended by the board.

📌 Key Takeaways

• 📉 Net loss for the quarter ended September 30, 2025, was PKR 7.18 million, an improvement from a PKR 30.60 million loss in the same period last year.
• 📈 Sales surged to PKR 487.19 million, a substantial increase from PKR 139.49 million year-over-year.
• 🏭 Cost of sales also increased significantly to PKR 484.62 million from PKR 166.27 million year-over-year.
• Gross profit stood at PKR 2.57 million compared to a gross loss of PKR 26.78 million in the corresponding quarter of the previous year.
• 💸 Operating expenses increased to PKR 5.54 million compared to PKR 4.12 million in the same quarter last year.
• 💰 Other operating income decreased to PKR 0.65 million from PKR 1.16 million year-over-year.
• 🏛️ The company reported a loss before levy and taxation of PKR 2.32 million, compared to a loss of PKR 29.74 million in the same quarter last year.
• 🧾 Levy was PKR 6.09 million compared to PKR 1.74 million in the prior year quarter.
• ✔️ Loss per share (basic) improved to PKR (0.57) from PKR (2.43).
• 🚫 No cash dividend, bonus shares, or right shares were recommended by the board.
• ⚠️ Accumulated loss increased to PKR 143.07 million as of September 30, 2025.

🎯 Investment Thesis

Based on the current financial results, a SELL recommendation is appropriate. Although revenue increased significantly, the company is still operating at a loss and has substantial accumulated losses. Until profitability improves and the company strengthens its balance sheet, the stock is considered a high-risk investment. There are no dividend payments and shareholder equity is weak.