⚡ Flash Summary

Reliance Weaving Mills Limited reported its financial results for the quarter ended September 30, 2025. The company experienced a net loss of PKR 2.902 million before taxation, a significant downturn compared to the profit of PKR 39.857 million in the same period last year. Correspondingly, profit after taxation and levies decreased to PKR 44.532 million from PKR 10.627 million. Earnings per share also declined substantially from PKR 0.34 to PKR 1.45.

📌 Key Takeaways

• 📉 Net loss before taxation: PKR (2.902) million vs profit PKR 39.857 million YoY.
• 📉 Profit after taxation and levies: Decreased to PKR 44.532 million from PKR 10.627 million YoY.
• 📉 Earnings per share (EPS): Dropped to PKR 1.45 from PKR 0.34 YoY.
• ⬆️ Sales – net: Marginal increase to PKR 10,735.824 million from PKR 10,722.929 million YoY.
• Gross profit: Decreased to PKR 879.335 million from PKR 1,079.797 million YoY.
• ⬆️ Finance Cost: Decreased to PKR (643.511) million from PKR (795.185) million YoY.
• 💰 Cash dividend: NIL for the quarter.
• 🚫 Bonus shares: NIL for the quarter.
• 🚫 Right shares: NIL for the quarter.
• 🚫 Any other entitlement/corporate action: NIL for the quarter.
• 🚫 Any other price-sensitive information: NIL for the quarter.
• ⬇️ Profit from operations: Decreased to PKR 640.609 million from PKR 835.042 million YoY.
• ⬆️ Minimum and final tax levies: Increased to PKR 56.066 million from PKR (31.415) million YoY.

🎯 Investment Thesis

Based on the current financial results, a SELL recommendation is appropriate. The significant decline in profitability and EPS raises concerns about the company’s operational efficiency and future earnings potential. Price Target: PKR 25 (based on reduced earnings estimates). Time Horizon: 6-12 months. Rationale: The negative trends in profitability warrant caution, and investors should consider reducing their exposure to Reliance Weaving Mills Limited until there is evidence of a turnaround.