Roomi Fabrics Limited ("the Company" or "RFL") was incorporated in Pakistan in 2002 as a Public Limited Company.

Roomi Fabrics Limited originated as part of the esteemed Mahmood Group, a diversified enterprise founded in 1935 with its initial operations in the tannery sector. Over the decades, the Group has strategically expanded its footprint across the entire textile value chain—from raw material cultivation to finished goods—while also establishing a strong presence in leather processing, real estate development, and the food industry.

Roomi Fabrics Limited is primarily engaged in the manufacturing and sale of yarn, greige fabric, and textile made-ups. The company operates a robust production infrastructure comprising 36,000 spindles, 240 weaving looms, 50 terry looms, and 132 specialized stitching machines dedicated to its home textile division. To support uninterrupted operations, Roomi Fabrics has installed a total of 10 generators with a combined power generation capacity of 15 MW. The registered office of the Company is situated in 5-Officers Colony, Multan.

The Company was chaired by Mr. Khawaja Jalaluddin Roomi (late), who also served as its principal shareholder, holding a 16.02% equity stake. Ownership is primarily concentrated within the Roomi family, thereby maintaining strong family control and governance over the Company.

A well-defined and streamlined shareholding structure, coupled with a clear succession framework, reinforces the overall strength and continuity of ownership. Formal documentation of the succession plan, however, would further enhance transparency and the overall ownership matrix of the Company.

Mr. Khawaja Jalaluddin Roomi held a graduate degree with over three decades of diverse professional experience. He held leadership roles across government, semi-government, and public limited organizations, through which he had developed substantial expertise and strategic insight. His broad exposure and proven leadership equipped him with the business acumen necessary to navigate and sustain the Company.

Roomi Fabric operates under the umbrella of the Masood-Roomi Group. The sponsoring family also owns and manages three other textile enterprises—Masood Fabric Limited, Roomi Home, and Masood Apparels—as well as two holding companies, Masood Holding and Roomi Holding. This diversified group presence reflects the sponsors’ financial depth and capacity to extend support to Roomi Fabric when needed.

The Company’s board comprises five members, including the late chairman, Khawaja Jalaluddin Roomi. The rest of the positions are vested with his two sons, Khawaja Najam-Ud-Din Roomi. and Khawaja Hassam-ud-Din Roomi. Mr. Javed Anjum and Mr. Ghulam Jillani serve as the executive directors. The board lacks independent oversight, and inclusion of independent directors will enhance the governance framework of the Company

The Board comprises individuals with extensive knowledge and experience in the textile industry. The CEO brings deep expertise across multiple stages of the textile value chain, contributing to a well-rounded and effective leadership team. Additionally, both of his sons hold executive roles within the Company and are actively involved in overseeing strategic initiatives, ensuring continuity and forward-looking governance.

A total of four board meetings were held during the year, with high attendance reflecting strong engagement and commitment to board effectiveness. Nonetheless, there remains an opportunity to enhance governance standards through more comprehensive documentation of meeting minutes and the adoption of best practices.

Yousuf Adil, Chartered Accountants, classified in category A by the SBP’s panel of auditors, are the external auditors of the Company. The auditors issued an unqualified opinion on the Company’s financial statements for the year ended 30th June, 2025

The Company's organizational structure reflects a structured and well-defined governance and operational framework. At the top, the Chairman and Board of Directors provide strategic oversight. Executive management is led by the CEO, supported by key roles including the Executive Director, CFO, GM Audit, and GM Marketing. Technical functions are split between spinning and weaving, each managed by dedicated Technical Directors, indicating specialization across the production value chain. Financial oversight is further supported by a Manager Accounts under the CFO. The structure promotes functional clarity, accountability, and operational efficiency, aligning well with industry best practices.

Top management is backed by a team of skilled professionals across various departments, ensuring efficient reporting and operational continuity. Mr. Khawaja Jalaluddin Roomi, the Chairman, brings over 30 years of experience in the textile industry and has held his current role for more than two decades. The senior management team also reflects strong institutional knowledge, with most members having long-standing tenures within the organization.

Five management committees, Audit Committee, Risk Management Committee, HR and Remuneration Committee, ESG Committee, and Procurement Committee are in place in to assist the management team. Various reports pertaining to the Company's sales and inventory movements, as well as purchases and procurement activities, are prepared and submitted to senior management as required.

The Companys' MIS is generated on a monthly and daily basis, for all units. Various reports are collected and submitted to higher management regarding monthly operations, finished goods, cotton reconciliation reports, yield reports, and raw material reports, cashflows, daily production etc.

The Group consistently invests in upgrading its technological infrastructure across both manufacturing and support functions to enhance quality and cost efficiency while staying aligned with emerging technologies. Since 2014, the Company has been utilizing Oracle as its ERP solution and is currently operating on Oracle R12, customized by KPMG Taseer Hadi & Co. Chartered Accountants

During MY25, approximately 24.4 million MT of cotton was produced globally, compared to about 24.2 million MT in MY24. Throughout the year, low cotton production was observed in India and Pakistan. However, this was partly offset by increases in cotton production in China, the United States, and Brazil by roughly 9.7%, 19.4%, and 15.7%, respectively. China remains the largest producer and consumer of cotton worldwide (MY21-25). Pakistan's cotton output declined by approximately 30.7%, due to reduced cultivation area and a surge in duty-free imports of cotton and yarn, which disrupted domestic markets. Conversely, cotton imports increased by around 234.0% YoY during the same period to satisfy domestic demand (FY24: roughly 70.0% YoY decline). Cotton arrivals for FY24-25 totaled about 5.5 million bales. The target for cotton production in FY26 is set at approximately 10.2 million bales. The sector's rising dependence on imported cotton poses a supply-side risk. For FY25, imports accounted for approximately 35% of the cotton supply (-11% in FY24), adding about USD 1.27 billion (USD 448 million in FY24) to the country's import bill. Textile exports reached USD 17.9 billion in FY25, a modest rise from USD 16.7 billion the previous year, reflecting a 7.2% year-over-year growth. The largest contribution came from the composite and garments segment, at USD 14 billion, which included the weaving segment at USD 1.8 billion and the spinning segment at USD 0.7 billion. The production of cotton cloth in FY25 declined by approximately 0.7% year over year, reaching around 877.1 million square meters. During FY25, about 25.3% of the cotton cloth produced was exported (compared to roughly 27.2% in FY24), with the rest used for the domestic market. The country's fabric exports fell by approximately 4.4% in FY25 (FY24: up about 5.8% YoY), with approximately 23.4% of Pakistan's cotton cloth exports going to Bangladesh (compared to about 19.9% in FY24), followed by the USA with about 8.1% of cotton cloth exports (compared to approximately 7.8% in FY24). In FY25, the transition from the final tax regime to the normal tax regime is expected to affect the profitability of export-oriented units, with a 29% tax on profits and a super tax of up to 10%. The recent removal of GST exemption (Finance Bill, 2025) on textile inputs for exporters registered under the Export Facilitation Scheme (EFS) will offer tax protection and create a level playing field for domestic cotton and yarn producers. Currently, international cotton prices are higher than the price of locally produced cotton. The gap has widened to approximately 9.8 cents per pound (as of July 18, 2025), resulting in an average increase of about USD 36.8 per bale of imported cotton. A greater reliance on imported cotton could lead to higher raw material costs, ultimately impacting yarn prices and profit margins for the sector. Conversely, energy and finance costs are expected to stay within a range, given the projected reduction in interest rates and the absence of any major energy tariff increases. Considering the current climate change, flooding in major cotton regions, and shifting crop patterns, the target of approximately 10.2 million bales for FY26 appears challenging.

Roomi Fabrics Limited operates 36,000 spindles, 240 weaving looms, 50 Terry Looms, and 132 Stitching Machines dedicated to the home textile division. The Company is considered a low to mid-tier player and the relative positoning is considered adequate.

During FY25, the Company reported total net sales of PKR 22,402 million (FY24: PKR 25,334 million), reflecting a year-on-year decline of 11.6%, primarily driven by a significant reduction in export revenues amid subdued global demand. Export sales for the year amounted to PKR 13,070 million (FY24: PKR 21,239 million). The decline was largely attributable to lower yarn and cloth exports, which stood at PKR 1,901 million (FY24: PKR 6,552 million) and PKR 4,757 million (FY24: PKR 9,872 million), respectively. Home textile exports demonstrated relative resilience at PKR 3,004 million (FY24: PKR 2,496 million), while terry exports were reported at PKR 3,389 million (FY24: PKR 2,260 million). Export rebates declined to PKR 18 million (FY24: PKR 59 million). Conversely, local net sales improved significantly to PKR 9,333 million (FY24: PKR 4,095 million), driven primarily by higher cloth sales of PKR 5,015 million (FY24: PKR 1,869 million) and yarn sales of PKR 4,260 million (FY24: PKR 955 million).

During FY25, the gross margin reflected a decline at 15.0% (FY24: 16.6%) followed by a hike in wages and labour costs, impacting the inclined production cost. Consequently, the operating margin also declined to 9.1% (FY24: 9.6%). The Company's finance cost witnessed a decline (FY25: PKR 2,593mln, FY24: PKR 3,404mln) in line with the downward trajectory of policy rates. The Company has reported a net loss of PKR 838mln (FY24: PKR 53mln profit) as the Company's net margin stood at -3.7% (FY24: 0.2%). 

The Company undertook capital expenditures (CAPEX) in prior years, resulting in the establishment of a production facility aimed at enhancing terry towel manufacturing capacity. This expansion is anticipated to support topline growth in subsequent periods.

The Company meets its working capital requirements through a mix of internal generation and short-term borrowings (STBs). At end-Jun25, the company's net working capital days marginally declined at 152days (end-Jun 24: 155days) The inventory days increased sizably to 169 days (end-Jun 24: 146 days). The company's short-term leverage stood at -23.2% (end-Jun24: -11.2%). The Company's trade assets saw a marginal incline recorded at PKR 14.9bln (end-Jun24: PKR 14.3bln).

At end-Jun25, the Company's free cash flows from operations increased to PKR 2.8bln (end-Jun24: PKR 3.2bln). The company's interest coverage ratio declined to 1.0x (end-Jun24: 1.4x), along with the debt coverage ratio to 0.5x (end-Jun24: 0.7x). 

At end-Jun25, the company had a highly leveraged capital structure. The company's leveraging inclined to 77.3% (end-Jun24: 75.7%). During FY24, the company's equity base decreased to PKR 6.0bln (end-Jun24: PKR 6.8bln). Total borrowings to stand at PKR 20.5bln (end-Jun24: PKR 21.3bln). Short-term borrowings constitute 65.7% of the total borrowings.