Nishat Mills Limited is a public limited Company incorporated in Pakistan under the Companies Act, 1913 (now Companies Act, 2017). It is listed on the Pakistan Stock Exchange Limited. It is the flagship Company of the Nishat Group, one of the most prominent and diversified business conglomerates in Pakistan. Established in 1951, NML has grown into one of the largest vertically integrated textile companies in the country, with a strong presence across the entire textile value chain. The Company has a diverse product range and is engaged in textile manufacturing, including spinning, combing, weaving, bleaching, dyeing, printing, stitching, towel manufacturing and apparel production. It is also involved in the buying, selling, and trading of yarn, linen, cloth, and other goods and fabrics made from raw cotton, synthetic fibers, and cloth. Additionally, the Company generates, accumulates, distributes, supplies, and sells electricity. The Company’s current operational capacity includes 237,408 spindles, 1,105 looms, 10,320 rotors, 4 rotary printing machines, 11 digital printing machines, 7 thermosol dyeing machines, 24 thies dyeing machines and 5,103 stitching machines. Overall, the Company operates with 36 manufacturing units, each specializing in a specific product range.

Mian Mansha's family collectively owns the majority (~51%) shares of the Company directly through Individuals (~42%) and Group Companies (~9%). The remaining (~49%) stake of the Company is spread among Financial Institutions, General Public and Others. The Company’s ownership structure is expected to remain stable in the foreseeable future, primarily due to its affiliation with the Nishat Group, a well-established and diversified business conglomerate in Pakistan. The sponsors maintain effective control over the Company through their significant shareholding and strategic influence within the Group. The next generation of the Mansha family has been successfully integrated into the business, playing active roles in both strategic decision-making and day-to-day operations. Leadership responsibilities are functionally divided among the three brothers, each of whom oversees distinct business sectors or verticals within the Group, thereby ensuring continuity, operational efficiency, and long-term sustainability of the Group. The sponsors possess extensive and diversified business experience across multiple key sectors of the economy, including textiles, cement, banking, insurance, power generation, hospitality, agriculture, dairy, paper products and others. Their strong business acumen and strategic foresight have enabled them to navigate various economic cycles effectively, mitigating risks while maintaining a consistent growth trajectory. This depth of experience has contributed significantly to the long-term resilience and expansion of the Group’s operations, positioning it as one of the leading conglomerates in Pakistan. Nishat Group possesses a substantial asset base of approximately PKR 4trln, diversified across multiple economic sectors — a testament to the sponsor's solid financial standing. The financial strength of NML is further supplemented by its Holdco status, with a consolidated topline and consolidated equity base of PKR 51.0bln and PKR 180.9bln in 1QFY26. 

The board comprises seven members, including two directors representing the sponsoring family — the Chairman and the CEO. The composition includes two independent directors, four non-executive directors, and one executive director, reflecting a strong governance framework. The Chairman, Mr. Hassan Mansha, an Honorary Consul of Brazil in Pakistan, has over 25 years of diversified experience and holds directorships in Nishat Power Limited, Security General Insurance Company Limited, Lalpir Power Limited, Nishat Hotels and Properties Limited, and other Group companies. Mr. Syed Zahid Hussain, a fellow of the Institute of Management (England), the International Biographical Centre (USA), and the Institute of Marketing Management (Karachi), is recognized for his multi-faceted talents and professional accomplishments. Mr. Farid Noor Ali Fazal, with a background in Commerce, Law, and Management, has nearly 51 years of experience in marketing, logistics, and administration, and currently serves as Senior Vice Chairman of the All Pakistan Cement Manufacturers Association (APCMA). Mr. Mahmood Akhtar holds an MBA from the University of the Punjab and brings over 48 years of managerial experience. Mrs. Sara Aqeel, a gold medalist in Law, has practiced at Ramday Law Associates with a focus on corporate and banking sector cases. Mrs. Mehak Adil holds an LLM from the London School of Economics and Political Science, specializing in Corporate and Commercial Law, and is an Advocate of the High Courts of Pakistan with expertise in domestic and international dispute resolution, including arbitration. In alignment with effective corporate governance practices, the Company has constituted two key committees. Among these, the Audit Committee is chaired by Mrs. Mehak Adil while the Human Resource & Remuneration Committee is chaired by Mrs. Sara Aqeel. In FY25, four Board meetings were convened, enabling the Board to effectively discharge its oversight responsibilities. The minutes of these meetings were formally recorded and well-documented. In the same period, the Audit Committee convened four meetings, while the Human Resource & Remuneration Committee held one meeting with strong attendance by all members. This structured approach reflects the Company’s commitment to board effectiveness. To uphold high standards of transparency and financial integrity, the Company has appointed M/s. Riaz Ahmad & Company, Chartered Accountants, as its external auditors. They expressed an unqualified opinion on the Company’s financial statements for the period ended June 30, 2025.

The management control of the Company is vested with Nishat Group and is supported by a well-defined and structured reporting framework, comprising several key departments to ensure the smooth flow of operations. These departments are further divided into various subdivisions, facilitating clear reporting lines across all levels of the organization. The reporting structure is designed to enhance transparency and ensure that all departments and functions remain aligned with the Company’s strategic objectives. All department heads, including the CFO, report directly to the Company's CEO. Mr. Umer Mansha, the Chief Executive Officer, holds a Bachelor's degree from Babson College, Boston, USA. He serves on the board of Adamjee Insurance Company Limited, MCB Bank Limited, Adamjee Life Assurance Company Limited, Nishat Dairy (Private) Limited, Nishat Hotels and Properties Limited, and several other Group companies. Mr. Mansha has been associated with the Company since 1994 and is primarily responsible for managing the Company's overall affairs. He is supported by a team of highly qualified and experienced professionals. The Chief Financial Officer, Mr. Muhammad Azam, has been associated with the Company since 1991. He brings over 41 years of comprehensive experience, with deep expertise in the textile industry. His extensive knowledge and industry insight contribute significantly to the Company’s operational initiatives.

In FY25, the Company's revenue base witnessed a robust increase clocking at PKR 178.1bln (FY24: PKR 160.2bln), up by 11.2% on a year-on-year basis. Despite a challenging global economic environment, the Company achieved higher volumes, underpinned by strong business fundamentals. Each operating segment of NML is managed as an independent profit center, with its performance evaluated individually on an absolute basis. The Company has established a diverse and stable clientele around the globe. The export sales have been distributed across several regions, with Europe accounting for 25.1%, contributing PKR 44.8bln to the topline. This is followed by Africa, Asia, and Australia, which together make up 16.1% of sales at PKR 28.8bln, and America, contributing 12.8% at PKR 22.8bln, indicating a low geographic concentration risk. Product-wise analysis reveals that the Yarn and Grey Cloth were the Company's prime products, followed by Processed Cloth and Madeups. In FY25, the Company's gross profit margin inched up to 11.2% (FY24: 10.8%). The key factors influencing the overall cost structure and profitability matrix include USD exchange rate stability, product price dynamics, rising energy tariffs, revision of minimum wage and an increased tax burden resulting from the transition of exportoriented units from the FTR to the NTR. The Company secured a considerable income from its strategic portfolio. Despite intensive working capital requirements, the Company's finance cost exhibited a notable decrease at PKR 8.4bln (FY24: PKR 10.4bln). The Company maintained its net profitability at PKR 6.0bln (FY24: PKR 6.3bln). As a consequence, the Company's net profit margin stood at 3.4% (FY24: 4.0%). In 1QFY26, the Company's revenue base grew further reaching PKR 45.0bln (1QFY25: PKR 43.4bln). The gross profit and net profit margin clocked at 11.0% (1QFY25: 10.9%) and 1.7% (1QFY25: 2.2%).

The Company's working capital requirements are a function of its inventory days and trade receivables days, for which the Company relies on a mix of internal generation and short-term borrowings (STBs). In 1QFY26, the Company's net working capital cycle was stretched to 136 days (FY25: 123 days). This was mainly driven by higher inventory holdings in line with considerable volume expansion. However, the liquidity positioning remained strong, with a current ratio of 4.3x (FY25: 4.7x). This indicates the Company's ample capacity to service the short-term debt obligations. The free cash flows from operations (FCFO) stood at PKR 2.5bln (FY25: PKR 10.8bln), indicating a sustained operational efficiency. This, coupled with a relatively lower interest burden, supported a modest improvement in the interest coverage. The Company maintains a leveraged capital structure. During the period, the total debt book reflected a downward trend reported at PKR 83.2bln (FY25: PKR 88.9bln). This rise was driven by extensive working capital needs following notable topline growth. As a result, the gearing ratio exhibited a reduction at 34.8% (FY25: 38.1%). The Company's equity base strengthened further to PKR 155.7bln (FY25: PKR 144.6bln), supported by retained earnings from prior years. Short-term borrowings made up 65.7% of the total debt, indicating a reliance on external funding sources.

Nishat Mills Limited has issued a Privately Placed, Unsecured, Non-convertible Shariah-Compliant Short-Term Sukuk or Islamic Commercial Paper of PKR 5.0bln. The tenure of the instrument will be 6 months from the date of issue. It carries a profit rate of 3 months kibor + 05 bps. The proceeds from the facility will be utilized to meet the Company's working capital requirements, including the procurement of cotton. The instrument has a call option, and it is exercisable after 3 months from the issuance date with a 5-day prior notice. The instrument will be redeemed at the maturity date through a bullet payment.

The claim of the Sukuk will rank superior to the claim of ordinary shareholders.

The instrument is unsecured.