📉 STYLERS: SELL Signal (7/10) – Transmission of Quarterly Report for the Period Ended 30-09-2025

📌 Key Takeaways

• 📉 Revenue decreased by 5.05% YoY, from PKR 4.88 billion to PKR 4.64 billion.
• 📉 Gross profit margin declined from 17.26% to 16.61%.
• 😓 EPS dropped from PKR 0.63 to PKR 0.47.
• ⬆️ EBITDA increased to PKR 528 million from PKR 493 million YoY.
• 💸 Finance costs increased from PKR 68.029 million to PKR 103.757 million.
• 💼 Administrative expenses increased from PKR 119.010 million to PKR 139.758 million
• ⚠️ Income tax charge increased due to the transition to the Normal Tax Regime.
• 🏭 The company is focused on the Sunshine Expansion Project to improve production capacity.
• 🚢 Improved operational efficiency was achieved through a reduction in air freight costs.
• ✂️ Other income declined due to lower bank profit rates.
• 🏢 Diminishing Musharakah rental expenses increased following the addition of factory premises.
• 🇵🇰 Pakistan’s textile exports recorded a growth of 5.62% in the first quarter of FY2026.
• 👗 Export of readymade garments surged by 6.07% to USD 1,057.29 million from USD 996.78 million.

🎯 Investment Thesis

Given the decline in revenue, profit margins, and EPS, along with increased finance costs, a SELL recommendation is warranted. While the Sunshine Expansion Project could improve future profitability, the current financial performance indicates significant challenges. A price target will require further analysis and the time horizon is MEDIUM_TERM pending significant operational improvements.