Saif Textile Mills Limited, was incorporated in 1989 as a Public Limited Company. It is listed on Pakistan Stock Exchange.

Saif Textile has been associated with the Group since its inception. The Group has a presence in the spinning sector through Kohat Textile and Mediterranean Textile, The Company's production facilities are located in Gadoon Industrial Estate, KPK.

The Company engage in the manufacturing and marketing of diverse yarn varieties, including accru yarn, melange yarn, dyed yarn, and surgical cotton. STMLoperates with a total of 105,744 ring spindles and 19 doubling machines, achieving an annual production capacity of 19 million kilograms. Additionally, the Company has a dyeing unit with a production capacity of 15 tonnes per day. At full capacity utilization, total energy requirement is 10 MW, sourced as follows: 12.2 MW from gas, 9.9 MW from the grid, and 10 MW from solar power.

Saif Group, via its holding entity Saif Holdings, maintains a controlling stake in Saif Textiles. This control is enabled through a 49.59% shareholding in the Company. Other significant shareholders include NIT (5.80%), while the remaining 44.61% constitutes the free float.

The Group has established a holding Company structure with equitable shareholding among all Saif brothers, signifying a formalized and coherent succession framework. However, the transfer of ownership to the next generation has not yet been documented.

The sponsors have maintained a presence in the local spinning industry for over five decades, during which they developed deep operational expertise. Although the Group's expansion within the textile sector remained modest, it demonstrated resilience by sustaining operations through periods of significant volatility, particularly within the spinning segment.

The Group is one of the prominent industrial and services conglomerates in Pakistan. It has a notable presence across diverse industry segments, including power, textiles, oil and gas exploration, real estate, information technology and communication, ag healthcare, through seven subsidiaries and four associated companies. The Group's strong financial position demonstrates its ability to support Saif Textile in times of need, as evidenced in the past.

The Board of Directors of Saif Textile Mills Limited comprises eight members, including the Chairman. The board includes six non-executive directors and two independent directors.. There have been two changes in the board composition. Mr. Rashid resigned as a director, and Mr. Khalid Siddiq Tirmizey was appointed as new independent director on May 22, 2025. Additionally, Mr. Rana Muhammad Shafi replaced Mr. Sohail Hussain Hydari as a director on May 23, 2025. The Company's board is dominated by sponsor family representatives. Most of the directors have been associated with the board for a reasonably long time.

Mr. Javed Saifullah Khan is the Chairman of the Company, succeeding Mr. Osman Saifullah Khan, who now serves as a Director. Mr. Javed Saifullah Khan holds an MBA from the University of Pittsburgh and brings over four decades of extensive experience to the role. Mr. Osman Saifullah Khan holds a Master's degree in Engineering and Management and has 30 years of broad experience. Ms. Hoor Yousafzai is a qualified Chartered Accountant and servers as a director. she has been associated with Saif Textile Mills Limited for 19 years. The other board members possess and diverse expertise.

During FY25, the Company held six meetings of the Board of Directors. Board meetings have adequate attendance of directors. The board meeting minutes were appropriately recorded. Meanwhile, the overall strategy of the Company is discussed in the bi-annual group meeting of Saif Group. For effective oversight and compliance with the code of corporate governance, the board has formed two board committees namely i) Audit Committee and (ii) Human Resource & Remuneration Committee.

M/s ShineWing Hameed Chaudhri & Co., Chartered Accountants, are the external auditors of the Company. The firm is included in the SBP's panel of auditors under category 'B'. They have expressed an unqualified opinion on the financial for the year ended June 2025.

The Company operates with a lean organizational structure, wherein departmental heads report directly to the Executive Director of Finance and Operations, who in turn reports to both the CEO and the Board of Directors.

On May 15, 2025, Mr. Sohail Hussain Hydari tendered his resignation from the position of CEO. The Board appointed Mr. Assad Saifullah Khan as the new CEO. He brings 19 years of experience in the textile industry and has been associated with the Company for 18 years. He is also currently serving as the CEO of Kohat Textile Mills Limited. Additionally, Mr. Muhammad Waseem Aslam replaced Mr. Luqman as CFO in January 2025, bringing nearly two decades of experience to the role.

There is no formal management committee, however, the Company maintains an adequate IT infrastructure and related controls. Additionally, a delegation of authority matrix by sponsors to management is considered positive for management effectiveness.

Saif Textile has implemented Microsoft Dynamics-based ERP solutions with twelve operational modules including (i) Payable, (ii) Receivable, (il) Inventory, (iv) Procurement and sourcing, (v) Sales & Marketing, (vi) General Ledger, (vii) Fixed Assets, (vili) Cash and Bank Management, (ix) Product Information Management, (x) Organization Administration (xi) System Administration and (xii) External Asset Management. This system, while integrating the business functions of the company, helps the management in decision-making by collecting information timely. Moreover, all the IT departments of Saif Group are centralized.

The Company adheres to several quality assurance standards, including EKA TEX 100, ISO 9001:2008, ISO 14001. Global Organic Textile Standards, and Supima. STML also maintains an effective internal audit department that enhance risk management, control, and governance processes. The department is comprised of a dedicated team led by an internal auditor.

During FY25, Pakistan’s textile sector demonstrated moderate recovery, with total textile and clothing exports reaching approximately USD 17.9bln, reflecting a year-on-year growth of around 7.4% compared to USD 16.6bln in FY24, The textile sector continued to dominate Pakistan’s export basket, contributing over 55% to total exports, highlighting its critical role in the country’s external account. Growth during FY25 was primarily driven by value-added segments, particularly knitwear, readymade garments, and bedwear, which recorded double-digit growth rates. In contrast, traditional segments such as cotton yarn and cotton cloth experienced declines, with cotton yarn exports falling by approximately 28.8% and cotton cloth exports declining by around 3%. This indicates a structural shift within the industry toward higher value-added products, improving export resilience despite global demand pressures. On the supply side, the sector continues to face constraints due to limited domestic cotton production, resulting in a significant increase in cotton imports. During FY25, raw cotton imports surged by over 180% year-on-year, reflecting the widening gap between domestic demand and local production. This growing reliance on imported raw materials exposes the industry to exchange rate volatility and international price fluctuations, thereby increasing cost pressures and supply-side risks. This growing reliance on imported raw materials exposes the industry to exchange rate volatility and international price fluctuations, thereby increasing cost pressures and supply-side risks. Overall, the textile sector outlook remains cautiously optimistic. The ongoing transition toward value-added exports, combined with gradual macroeconomic stabilization, provides a positive long-term trajectory. However, Amid geopolitical instability, uncertainties in international logistics persist, coupled with rising fuel costs and inflationary pressures. 

The Company's association with the Saif Group strengthens its position in the local spinning industry. However, on a standalone basis, the Company's share in the local spinning industry is considered adequate.

During 6MFY26, the Company’s net revenue declined by 19.9%, with sales recorded at approximately PKR 4,909mlm (6MFY25: PKR 6,136mlm). This decline was primarily driven by constrained market liquidity for local spinners, along with a downward trend in international cotton prices that resulted in lower yarn prices. The majority of the Company’s revenue is derived from local yarn sales, with a significant portion attributed to Accru yarn. The Company’s export markets include Brazil, Uruguay, and Italy; however, the contribution of exports to total sales remains minimal. Accru yarn remains the Company’s leading product.

During 6MFY26, the Company’s margins exhibited improvement, supported by relatively better cost management and easing pressure on input costs. The gross margin increased to 15.3% (6MFY25: 13.1%), indicating a recovery in core profitability. Consequently, the operating margin also improved to 10.9% (6MFY25: 9.7%). At the bottom line, the Company posted a net profit margin of 1.1%, compared to a negative margin of -2.6% in 6MFY25. In absolute terms, the Company reported a net profit of PKR 54mln during 6MFY26, a notable turnaround from a net loss of PKR 157mln in the corresponding period last year.

Following the recent reduction in electricity prices, the Company has shifted a major portion of its energy consumption to electricity. In pursuit of a sustainable renewable energy solution, STML has a fully operational 10MW solar power plant, with an estimated project cost of PKR 800mln as per management.

During 6MFY26, the Company’s net working capital days increased to 209 days, compared to 147 days in 6MFY25. This deterioration is primarily attributable to an increase in trade receivables days, which rose to 109 days from 66 days, indicating slower recoveries. Additionally, inventory days also increased to 116 days (6MFY25: 102 days), reflecting higher stock holding. The Company continues to fund its working capital requirements through short-term borrowings. The total borrowings stood at PKR 5,008mln during 6MFY26 (6MFY25: PKR 5,145mln), indicating some reduction in reliance on external funding. Meanwhile, the short-term trade leverage of the Company stood at 20.3% (6MFY25: -14.6%), depicting improved capacity to raise working capital financing.

During 6MFY26, the Company’s free cash flow from operations (FCFO) improved to PKR 841mln (6MFY25: PKR 736mln), primarily supported by better operating performance. The Company’s short-term borrowings declined to PKR 4,252mln (6MFY25: PKR 4,508mln), indicating reduced reliance on external funding. Coverage indicators showed notable improvement, with interest coverage (EBITDA/finance cost) increasing to 1.7x (6MFY25: 1.2x), reflecting enhanced capacity to meet finance costs. Similarly, debt payback period improved significantly to 4.5x (6MFY25: 24.2x), supported by stronger cash flow generation and lower debt levels. Going forward, further strengthening of cash flows and maintenance of prudent leverage levels will remain important to sustain coverage metrics and overall credit quality.

During 6MFY26, the Company’s leverage ratio slightly increased to 67.9% (6MFY25: 65.7%), indicating a marginal rise in financial risk. The equity base witnessed a slight decline to PKR 3,801mln (6MFY25: PKR 3,992mln), primarily due to the erosion from prior period losses. On the other hand, the Company’s total debt levels reduced to PKR 5,008mln (6MFY25: 5,145PKR mln), reflecting some deleveraging. Despite the reduction in borrowings, the leverage remained elevated due to the relatively weak equity base. Going forward, strengthening the equity base and maintaining disciplined debt levels will remain critical for improving the Company’s overall capitalization profile.