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. Over the years, 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 operates with a vision to remain at the forefront of the industry, committed to protecting stakeholder interests, supporting the community, and driving economic progress in Pakistan.

The Company has a diverse product range and is engaged in textile manufacturing, including spinning, combing, weaving, bleaching, dyeing, printing, stitching, denim, workwear, terry 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 225,408 spindles, 1,088 looms, 13,320 rotors, 24 thies dyeing machines, 4 rotary printing machines, 11 digital printing machines, 7 thermosol dyeing machines and 5,707 stitching machines. Overall, Nishat Mills operates with 38 manufacturing units, each specializing in a specific product range.

Mian Mansha's family collectively owns the majority (~51%) of the Company's shares 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, and paper products. 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 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 26 years of diversified experience and holds directorships in Nishat Power Limited, Security General Insurance Company 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 52 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 49 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 an appropriately sized Board, supported by two key committees — the Audit Committee and the Human Resource & Remuneration Committee chaired by Mrs. Mehak Adil and Mrs. Sara Aqeel. 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, 2026. The Company has established a strong system of internal and financial controls to protect its assets, prevent fraud, and ensure compliance with legal regulations. This control framework is regularly reviewed and monitored by the Internal Audit function, established by the Board Audit Committee.

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. He 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 47 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.

The Company has established several management committees to support strategic planning and operational oversight. These committees review performance, ensure operational efficiency, and formulate forward-looking strategies. The Company has implemented an Oracle-based Enterprise Resource Planning (ERP) system, Oracle version 10, which provides comprehensive Management Information System (MIS) reporting. The Company’s monthly MIS includes detailed segment-wise and unit-wise performance reports, covering daily raw material consumption, production, inventory status, monthly pricing analysis, and a comparison of actual vs. budgeted performance. Additionally, it includes reports on exports vs. imports and plant efficiency, ensuring thorough monitoring and analysis of operational performance.

NML is accredited with internationally recognized compliance certifications, reflecting its commitment to maintaining high standards in quality, safety, and sustainability. These certifications cover various areas, including product quality, environmental management, occupational health and safety, and social responsibility. To ensure continuous compliance, the Company undergoes regular audits and assessments by third-party auditors, enabling the Company to maintain its certifications and implement improvements as required.

Nishat Mills Limited is considered one of the largest textile exporters in Pakistan and falls in the top tier of the respective universe. A substantial share of the Company’s revenue is driven by export sales, while the remaining portion is derived from local sales. Over the years, the topline experienced a 3-year CAGR of 8.7% from 2024 to 2026, reaching PKR 181.6bln (FY25: PKR 178.1bln). The Company’s revenue base exhibited a slight growth on a year-on-year basis due to strategic business expansion and diversified product range. The overall sales mix skewed towards the export market. Despite a challenging business environment and trade conditions, the exports accounted for ~55% of the total revenue, increasing to PKR 100.2bln (FY25: PKR 95.6bln). Yarn and Grey Cloth were the top-performing products in FY26, with a contribution of PKR 53.7bln and PKR 37.8bln to the Company's topline. These were followed by Processed Cloth, Made-ups, Garments and Towels & Bathrobes. Europe continues to be the prime export destination during the period under review.

In FY26, the Company’s gross profit margin squeezed to 9.8% (FY25: 11.2%) on the back of expensive raw material procurement, the surge in energy tariffs, and a revision in the wage rate. Despite controlled operating expenses, the Company’s operating profit margin stood at 3.4% (FY25: 5.1%). The Company’s finance cost declined to PKR 6.3bln (FY25: PKR 8.4bln), following a gradual decrease in the interest rate. Consequently, the bottom line clocked at PKR 5.4bln (FY25: PKR 6.0bln), with the net profit margin of 3.0% (FY25: 3.4%).

The Company finances its working capital requirements through a mix of internal cash generation and short-term borrowings (STBs). As of FY26, the Company’s net working capital cycle stretched to 133 days (FY25: 123 days), primarily due to an elongated inventory cycle of 99 days (FY25: 91 days). This increase is attributable to higher working capital deployment across the value chain to support operational requirements. Furthermore, the liquidity profile remains strong, evidenced by a current ratio of 4.6x (FY25: 4.7x). The Company’s free cash flows from operations (FCFO) decreased to PKR 8.3bln (FY25: PKR 10.8bln), primarily due to a reduction in profit before tax (PBT). Accordingly, the interest coverage and core operating coverage remained within a moderate range.

The Company maintains a moderately leveraged capital structure, with the leverage ratio inching down to 37.3% in FY26 (FY25: 38.1%). The equity base strengthened to PKR 156.0bln (FY25: PKR 144.6bln), primarily driven by the retention of earnings. The debt profile expanded, with total borrowings rising to PKR 92.8bln (FY25: PKR 88.9bln), mainly to finance elevated working capital requirements. Of this, short-term borrowings (STBs) constitute a significant portion at 65.2%, amounting to PKR 60.5bln (FY25: PKR 60.2bln).

NML is set to issue a privately placed, unsecured, non-convertible shariah-compliant short-term sukuk or Islamic commercial paper of PKR 7.5bln (inclusive of a green shoe option of PKR 2.5bln). The purpose of the instrument is to finance the working capital requirements of the Company.  The instrument will have a tenor of six months from the date of issue, carrying a profit rate of 3M KIBOR + TBD. The profit will be paid on a quarterly basis. The Sukuk has a call option, exercisable after three months from the issue date, with 5 days' prior notice. Once exercised, the call option is irrevocable.

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

The instrument is unsecured.