Din Textile Mills Limited ("Din Textile" or "DTML" or "the Company) is a public limited company incorporated in 1987 under the repealed Companies Ordinance 1984, now governed by the Companies Act 2017. The Company is listed on the Pakistan Stock Exchange. Its principal business activities encompass the manufacturing and sale of yarn and greige fabric, with operations spanning spinning, weaving, dyeing and stitching. 

The Din Group was founded in 1954 by the Late Mr. SM Munir, originally as a leather enterprise. Over successive decades, the group diversified its business portfolio to include textiles, dairy, poultry, energy, and real estate, establishing itself as one of Pakistan's recognised conglomerates. Din Textile Mills Limited was formally incorporated in 1987 as a flagship textile unit within the group structure. The Company's growth trajectory has been primarily organic, centred on progressive capacity expansion across its spinning, weaving, and dyeing operations. The integration of captive power generation through Din Power Plant represented a significant infrastructural milestone that strengthened operational self-sufficiency. The second generation of the founding family assumed stewardship of the business, continuing the group's core philosophy of operational excellence and sustainable growth.

The Company currently operates three units located at Multan Road, Pattoki, and Raiwind, following the shutdown of Spinning Unit-IV, as disclosed on September 25, 2025. The Company has an annual installed capacity of 46.1mln kg of yarn and 88.3mln metres of fabric, supported by ~136,656 spindles and ~144 looms. All spinning and dyeing operations are supported by captive energy generated through the Din Power Plant. Following the shutdown of Spinning Unit-IV, the unutilised portion of the facility has been rented out to optimize asset utilization. The Company's product portfolio comprises combed compact yarn, core-spun and slub Lycra yarn, dyed and melange yarn, ply and gassed yarn, knitwear yarn, greige fabric, and bleached cotton web for surgical and cosmetic applications. Spinning remains the Company's primary revenue-generating segment, followed by weaving. The Company exports its products to markets including Portugal, France, China, Italy, and Bangladesh, while domestic sales continue to account for a growing share of revenue. The Company has also ventured into stitching to cater to the export made-up market by leveraging its existing infrastructure.

The sponsoring family collectively holds a majority stake of 44.3% in the Company through direct individual shareholdings. Din Corporation (Pvt.) Limited accounts for an additional 12.3% stake, further consolidating family and related-party control. The general public represents the single largest non-sponsor category at 30.1% of total shareholding, constituting the free float of the Company. The remaining 11.5% is held by others. Institutional investors, comprising NIT and ICP, modarabas, mutual funds, banks, and insurance companies, collectively hold 1.8% of the issued share capital. The effective control of the entity rests with the sponsoring family, whose combined direct and indirect stakes secure a dominant position in strategic decision-making.

The Company's operations are governed by the second generation of the founding family, with Shaikh Muhammad Tanveer, son of the Late Mr. SM Munir, serving as Chief Executive Officer. The ownership structure has remained stable without any material changes, and no alterations to the shareholding pattern are anticipated in the foreseeable future. The continuity of family stewardship across generations reflects an orderly succession arrangement and reinforces the stability of the ownership base.

The sponsoring family possesses extensive expertise and nearly seven decades of cumulative experience across the Din Group's diversified business portfolio. Having effectively managed the textile operations for over 38 years through varying economic and industry cycles, the sponsors have demonstrated a track record of sustained operational continuity. Shaikh Muhammad Tanveer has held prominent leadership positions at the national level, including Chairman of Punjab Industrial Estates and Chairman of the All Pakistan Textile Mills Association, reflecting the sponsors' engagement with both the industry and the broader policy environment.

The Din Group operates a diversified business portfolio with interests spanning textiles, dairy, poultry, energy, and real estate. This multi-sector presence reflects the broader financial capacity of the sponsoring family. The sponsors have demonstrated a commitment to providing financial support to the Company, which serves as a credit comfort factor within the overall financial assessment. The group's diversified revenue streams across multiple industries provide a basis for potential extraordinary support to the entity when required.

The overall control of the Company is vested in a nine-member Board of Directors, chaired by Mr. Shaikh Muhammad Jawed. The Board comprises four non-executive directors, two executive directors, and three independent directors. The inclusion of independent directors continues to strengthen the Company’s governance profile.

Mr. Shaikh Muhammad Jawed serves as Non-Executive Director and Chairman of the Company. Having joined the family business in 1975, he has since played a pivotal role in driving the Group’s growth, alongside active involvement in social and welfare initiatives supporting underprivileged communities. Mr. Shaikh Muhammad Naveed serves as Director, overseeing Sales, Procurement, and the Balancing/Modernization of the Company’s spinning, dyeing, and power operations. He holds a Bachelor of Science in Business Administration and a Bachelor of Arts in Economics from Boston University, USA, and is a Qualified ISO-9000 Auditor (IRCA) and Microsoft Certified Professional.

DTML has established two board committees — the Audit Committee and the Human Resource & Remuneration Committee — through which the Board periodically evaluates the Company’s overall performance against its targets. Minutes of Board and committee meetings continue to be formally documented.

Naveed Zafar Ashfaq Jaffery & Co., Chartered Accountants, listed in Category “A” of the State Bank of Pakistan’s panel of auditors and holding a satisfactory Quality Control Review (QCR) rating, serve as the Company’s external auditors. The auditors have expressed an unqualified opinion on the financial statements for the year ended June 30, 2025.

The Company’s organizational structure supports strong governance, accountability, and operational efficiency. The Board of Directors provides overall strategic direction, supported by key functions including Internal Audit and Raw Material Procurement, reflecting the Company’s emphasis on financial discipline, transparency, and supply chain control. Operational oversight of Marketing & Sales, MIS & IT, Costing, Finance, Power, and Production is coordinated to ensure seamless alignment between commercial, financial, and operational activities.

Mr. Shaikh Muhammad Tanveer serves as Chief Executive Officer of the Company, a flagship unit of the Din Group. He has held prominent leadership roles including Chairman of Punjab Industrial Estates (PIE) and Chairman of the All Pakistan Textile Mills Association (APTMA), reflecting his active role in advancing the interests of the textile industry at both provincial and national levels. The finance function is currently led by Mr. Ahsan Nazir Khawaja, Chief Financial Officer, supported by Mr. Umair Ahmed Qureshi, Deputy General Manager – Finance & Company Secretary.

Management has demonstrated responsiveness to evolving market conditions by strategically reorienting its knitwear yarn business from export to the domestic market in response to changing demand dynamics. The Company has also ventured into the stitching segment to cater to the export made-up market, adopting a measured approach to revenue diversification through minimal capital expenditure and utilization of existing infrastructure. The planned solar expansion has been successfully completed and operationalized, increasing total operational solar capacity to 12.6MW and reinforcing management’s focus on cost efficiency and mitigation of energy-related risks. Furthermore, the Company continues to enhance its IT infrastructure and advance process automation to support operational efficiency. During FY26, the Company conducted four management meetings, reflecting active governance oversight and continued management engagement.

The Company works closely with end-users in studying day-to-day activities and identifying opportunities to automate and streamline processes, remaining committed to upgrading its IT infrastructure and advancing process automation. SAP was implemented on July 1, 2020 for optimal utilization of Company resources and timely decision-making. DTML continues to operate on SAP ECC 6.0 A1, implemented with the professional support of Siemens Pakistan (Pvt.) Limited.

A strong control environment and established internal control framework exists within the Company, comprising clear reporting structures, segregation of duties, defined authorization limits for operating bank accounts and approving expenditures, well-defined policies and procedures, and budgeting and review processes designed to reduce the risk of undetected error or fraud and limit opportunities for misappropriation of assets.

Pakistan's Composites and Garments sector saw a mixed 9MFY26, with domestic cotton output falling well short of government targets, sustaining import dependence, though softer local cotton prices through 1HFY26 eased raw material costs. Sector gross margins held broadly stable (13.8% vs. 13.2% in 9MFY25) as cotton savings were largely absorbed by elevated industrial energy tariffs, among the highest regionally. Sector leverage eased to 36.2% and interest coverage improved to 2.2x on the back of SBP's rate-cutting cycle, though domestic financing costs remain a competitive disadvantage versus regional peers.

DTML operates with a capacity of 136,656 spindles and 144 looms, positioning the Company within the mid-tier segment of the overall textile industry. Capacity utilisation at Unit 3 was enhanced during the year through a BMR programme that raised daily output from 520 to 700 bags, improving operating leverage and overhead absorption.

During 9MFY26, the Company’s revenue stood at PKR24,674mln, against PKR40,119mln for full-year FY25. Management attributes the year-on-year contraction in net sales to a deliberate strategic shift away from lower-margin volumes toward a higher-margin, value-added product mix, with full-year FY26 net sales projected at PKR33bln (FY25: PKR39bln) on this basis. The Company continues to maintain a diversified export base, with bed sheet exports directed primarily to Mexico, supplemented by European markets, while local sales are transacted alongside a stable base of financially strong domestic clientele.

During 9MFY26, the Company’s gross profit margin improved to 11.0% (FY25: 9.3%), supported by an improved product mix following the wind-down of loss-making capacity, higher utilisation at Unit 3, and lower energy costs from expanded solar generation and an alternative gas supply arrangement at Unit 1. The operating profit margin similarly improved to 7.4% (FY25: 6.5%). Finance cost for 9MFY26 stood at PKR1,610mln, moderating from PKR3,039mln in FY25, aided by continued paydown of short-term borrowings and softer market interest rates. Per management, this reflects a 50% reduction in the annualized finance cost run-rate relative to the FY24 peak of PKR4.0bln. Consequently, the Company’s net loss narrowed sharply to PKR61mln in 9MFY26, from PKR706mln in FY25 and a peak of PKR2.7bln in FY24, aided by a return to quarterly profitability in 2QFY26 and 3QFY26. Management is projecting a full-year FY26 profit of PKR100mln, marking the Company’s first full-year profit since the FY24 downturn.

Din Textile continues to pursue diversification into value-added, export-oriented segments, including stitching, aimed at broadening its revenue base and enhancing operational flexibility. In parallel, cost-efficiency initiatives — including 12.6 MW of installed solar capacity (covering an estimated 22-25% of Unit 3's power requirement) and an alternative, lower-cost gas supply arrangement at Unit 1 (contributing to an estimated 10-15% reduction in fuel and power costs) — are expected to mitigate exposure to energy cost volatility. The Company is also evaluating a short-term Sukuk issuance to support raw cotton procurement during the peak buying season, aimed at securing better-quality stock at more competitive rates. These measures are expected to support the Company's long-term sustainability profile.

The Company continues to meet its working capital requirements through a mix of internally generated cash flows and short-term borrowings. As of end-Mar26, the net working capital cycle stood at 122 days (end-Jun25: 114 days), with the increase primarily driven by higher inventory days (94 days; end-Jun25: 86 days) as the Company built up raw material stock ahead of the peak cotton-buying season, alongside elevated receivable days (60 days; end-Jun25: 48 days). This was partly offset by an extension in payable days to 32 days (end-Jun25: 20 days).

As of end-Mar26, the Company’s Free Cash Flows from Operations (FCFO) stood at PKR2,539mln for 9MFY26, against PKR4,041mln for full-year FY25. Coverage ratios strengthened accordingly, with EBITDA/Finance Cost improving to 1.9x (FY25: 1.4x) and FCFO/Finance Cost improving to 1.6x (FY25: 1.4x). Debt payback improved to 5.4x (FY25: 7.2x), reflecting stronger cash generation and a reduced borrowing base.

The Company’s capital structure, while still leveraged, showed improvement during the period. Overall leverage — Total Borrowings/(Total Borrowings + Equity) — reduced to 71.1% as of end-Mar26, from 75.7% at end-Jun25. Total borrowings declined to PKR17,149mln (end-Jun25: PKR21,985mln), driven primarily by a reduction in short-term borrowings to PKR10,002mln (end-Jun25: PKR13,908mln), which represented 58.3% of the total borrowing mix (end-Jun25: 63.3%). Shareholders’ equity stood at PKR6,984mln (end-Jun25: PKR7,045mln).