Company Name: Amtex Limited
Ticker: AMTEX
Amtex is a value-added textile exporter whose operating recovery must be read alongside an unusually difficult balance sheet. Sales and gross profit improved in the nine months to March 2026, but the final quarter in that period was loss-making, equity remained negative, most borrowings were overdue, and finance costs were not accrued on facilities under litigation. The company therefore combines a functioning order-to-export business with a long-running restructuring and asset-realisation problem. Latest nine-month report.
This article separates reported facts, management statements and AlphaGen inference. It explains the business and its accounts without offering buy or sell advice.
What Amtex does
Amtex Limited was incorporated in Punjab on 18 July 1991 and is listed on the Pakistan Stock Exchange. Its audited accounts describe the principal business as exporting processed value-added fabrics, textile made-ups, and casual and fashion garments. The company also trades yarn and manufactures and sells fabrics on its own account and on a conversion basis. A court-approved scheme merged Amtex Spinning Limited into the company from 1 April 2003. FY2025 annual report.
The official company profile places the processing and stitching operation at Punj Pullian, Daewoo Road, Faisalabad and identifies a spinning site on Sheikhupura Road. The latest annual and interim financial notes, however, identify the Punj Pullian processing and stitching units as the operating project location. This distinction matters: the historical footprint is broader than the set of assets visibly driving current disclosed production and sales. Official company profile.
Management presents Amtex as an integrated, direct-to-retailer textile supplier. The model is to offer several stages of the value chain—fabric preparation, dyeing or printing, finishing, cutting, stitching, garment wet processing, inspection and packing—so a buyer can source a finished product rather than raw cloth. The garments range includes sleepwear, casual shirts, hospital wear, scrub sets, bottoms and workwear. Its fabric catalogue spans cotton, polyester and blended constructions, multiple weaves, widths from 1,016 mm to 3,200 mm, and grey, bleached, dyed, coated, flocked or printed finishes. Official garment range.
The FY2025 corporate briefing says direct-to-retailer selling removes an intermediary and historically turned Amtex into an export house. That is a management description, not a guarantee of pricing power. Direct selling can improve the share of the retail value captured, but it also requires product development, compliance, short order runs, quality control, freight management and working capital before the customer pays. FY2025 corporate briefing.
How the operating model makes money
Amtex reports a single segment, so the accounts do not publish separate margins for fabric, processing, home textiles and garments. Revenue nevertheless shows two routes to market. In FY2025, export sales of made-ups and garments were Rs1.916 billion, local sales net of sales tax were Rs446.8 million and export rebate was Rs8.3 million, producing total revenue of Rs2.371 billion. Exports were therefore about 81% of reported revenue. FY2025 annual report.
Geography was concentrated. The United Kingdom generated Rs1.274 billion in FY2025, roughly 54% of company revenue, while the United States contributed Rs526.2 million. Smaller disclosed markets included France, Spain, the Czech Republic, Italy and Hong Kong. One customer represented Rs253.8 million, or about 11% of total revenue. Export customers generally receive 60–90 days to pay, compared with 15–30 days on local sales. FY2025 annual report.
The revenue engine is therefore order flow multiplied by volume, product mix, price and the rupee value of export receipts. A shift from processing or cloth toward finished made-ups can raise value per unit, but complexity and outsourced conversion costs also rise. Customer and country concentration mean that a few buying programmes, especially in the UK, can materially change factory utilisation.
The cost ledger reveals the practical inputs. FY2025 cost of manufacture included Rs1.254 billion of raw material, Rs275.7 million of dyes and chemicals, Rs239.4 million of packing material, Rs257.7 million of conversion, processing and stitching charges, Rs121.1 million of wages and benefits, and Rs25.6 million of fuel and power. Raw material is the largest disclosed cost, while the conversion line shows that external capacity and specialist processing are also important. FY2025 annual report.
Economically, cotton and yarn prices, chemical and packing costs, labour productivity, energy tariffs and subcontracting rates all influence gross margin. Export receipts provide a natural foreign-currency inflow, while imported machinery, certain chemicals and synthetic inputs can create foreign-currency outflows. The company does not disclose enough current purchase detail to quantify a net import exposure, so any precise FX hedge claim would be inference rather than reported fact.
Assets and production footprint
The audited FY2025 capacity note reports 43,159 metric tons of annual dyeing-and-finishing capacity but no output against that line. A separate 960-ton capacity line recorded 719 tons of output. Management says capacity for processing, home textile and apparel cannot be stated meaningfully because order lots and manufacturing routes vary. These disclosures suggest a selective operating footprint rather than uniformly utilised vertical integration. FY2025 annual report.
At June 2025, owned property, plant and equipment was Rs564.6 million and investment property was Rs1.314 billion. Investment property alone represented about 37% of total assets of Rs3.540 billion. The company also employed 59 non-factory and 221 factory workers at year-end, down from 78 and 260 respectively a year earlier. The workforce and asset mix reinforce that Amtex must be read as both a textile operator and an asset-backed restructuring case. FY2025 annual report.
Property transactions are part of the repair plan. Management says certain mortgaged properties are being sold and the proceeds directed to charge-holder banks to reduce debt and settle litigation. The FY2025 accounts recorded a Rs41.4 million gain on disposal of property, plant and equipment, while a settlement with Soneri Bank involved asset sales and payment of the proceeds to the bank. These are balance-sheet actions, not recurring textile earnings. FY2025 annual report.
Earnings quality: the operating business and the other-income bridge
FY2025 was a sharp reversal. Revenue fell 15% to Rs2.371 billion from Rs2.793 billion, gross profit dropped 68% to Rs133.0 million and gross margin compressed to 5.6% from 15.1%. After Rs104.0 million of selling expense, Rs115.3 million of administration expense and Rs157.3 million of reported finance cost, Amtex posted a Rs130.2 million loss after tax versus a Rs179.0 million profit in FY2024. FY2025 annual report.
Other operating income was Rs149.0 million—larger than gross profit. It included a Rs43.4 million unrealised gain on investment property, a Rs44.7 million gain on initial recognition of a related-party loan at fair value, a Rs41.4 million asset-disposal gain, Rs12.6 million of exchange gains and only Rs6.9 million of rental income. A large share was therefore non-cash, financing-related or non-recurring. Core textile profitability is better judged before these items. FY2025 annual report.
The nine months to 31 March 2026 were better in aggregate. Revenue rose 34% to Rs2.444 billion, gross profit rose 60% to Rs286.8 million and gross margin improved to 11.7% from 9.8%. Profit after tax was Rs10.0 million versus a Rs93.6 million loss. Operating cash flow improved to Rs139.7 million from an Rs83.3 million outflow, helped by a Rs123.8 million inventory release even as trade payables declined by Rs152.4 million. Latest nine-month report.
The third quarter by itself was weak. Revenue increased to Rs659.1 million from Rs400.6 million, but gross profit fell to Rs18.3 million from Rs65.8 million; quarterly gross margin was only 2.8% versus 16.4%. The quarter lost Rs60.9 million after tax. AlphaGen inference: the nine-month improvement is real, but the March-quarter mix or cost absorption was poor enough that volume alone did not protect margin. Future results should be tested for repeatability quarter by quarter. Latest nine-month report.
The balance-sheet constraint
At 31 March 2026, Amtex had total assets of Rs3.565 billion and total liabilities of Rs12.057 billion, leaving negative equity of Rs8.492 billion. Current assets were Rs1.594 billion against current liabilities of Rs9.172 billion. Cash had risen to Rs185.1 million, but short-term borrowings alone were Rs5.044 billion and interest or markup payable was Rs2.596 billion. Latest nine-month report.
The overdue schedule is more revealing than the headline debt. At 31 March 2026, overdue long-term installments were Rs456.3 million with Rs1.652 billion of associated markup; lease finance was Rs54.3 million with Rs19.6 million of markup; and short-term borrowings of Rs5.044 billion carried Rs2.596 billion of overdue markup. The carrying amounts linked to these overdues were Rs1.637 billion of long-term finance, Rs54.3 million of lease finance and Rs5.044 billion of short-term borrowings. Latest nine-month report.
Several banks and financial institutions have filed recovery suits. Amtex does not accrue markup or cost of funds on facilities under litigation, relying on legal advice that such cost is due only if awarded by a court. Reported nine-month finance cost was Rs73.9 million, but it does not represent a full economic charge on every disputed outstanding balance. Court outcomes could therefore change the liability and earnings picture materially. Latest nine-month report.
The accounts explicitly say negative equity and adverse short- and long-term solvency create significant doubt about the company’s ability to continue as a going concern. Management says restructurings have been agreed with some banks and negotiations with others continue. Those are management plans, not completed cures. The PSX also carries a risk-warning alert that Amtex is in continuous violation of specified listing-rule clauses and faces potential trading suspension or delisting. PSX company profile and risk warning.
Related parties and property economics
A related-party balance adds another layer. Abwa Knowledge Village repaid part of Amtex’s UBL obligation under a tripartite settlement, creating a long-term amount due from Amtex to the related party. Rent receivable from Abwa is offset against that financing balance. The amount due to the related party rose to Rs301.7 million by March 2026 from Rs239.5 million at June 2025. Latest nine-month report.
This arrangement links financing, property use and related-party settlement. Readers should distinguish cash rent received from accounting offsets, and should reconcile any fair-value loan income with the subsequent finance charge and cash repayment. A property gain or discounted-liability gain can improve profit without generating export cash.
Competitive position and operating environments
Amtex’s structural strength is its ability to take a buyer from fabric specification to finished home textile or garment, supported by a broad catalogue and export-market experience. The model is most favourable when overseas demand is firm, order runs fill available processing and stitching capacity, cotton and chemical costs are stable, energy is reliable, the rupee keeps exports competitive without creating input shocks, and customers accept enough price to cover freight, compliance and working capital.
The adverse environment combines weak retail demand, buyer concentration, short or complex orders, high cotton and conversion costs, expensive utilities, freight disruption, delayed tax refunds and rupee volatility. For Amtex, those industry risks sit on top of legacy debt and litigation. Even a healthy export season may not solve the capital structure if cash is absorbed by old claims; conversely, debt settlements and asset sales can reduce risk even if they temporarily shrink the operating footprint.
Growth avenues are therefore constrained but identifiable: improve the mix toward value-added made-ups and garments, deepen direct-retailer relationships, diversify beyond the UK, use outsourcing flexibly rather than carry idle fixed capacity, and convert operating cash into scheduled settlements. Expansion that requires fresh leverage would be difficult to justify until the overdue position and listing compliance are clearer.
Key facts and figures
• Incorporated: 18 July 1991; Amtex Spinning Limited merged into the company from 1 April 2003. FY2025 annual report.
• FY2025 revenue: Rs2.371 billion; 15% lower than FY2024. FY2025 annual report.
• FY2025 gross margin: 5.6%, down from 15.1%. FY2025 annual report.
• FY2025 loss after tax: Rs130.2 million; loss per share Rs0.50. FY2025 annual report.
• FY2025 export made-ups and garment sales: Rs1.916 billion, about 81% of revenue. FY2025 annual report.
• FY2025 UK revenue: Rs1.274 billion; US revenue: Rs526.2 million. FY2025 annual report.
• FY2025 total assets: Rs3.540 billion; investment property: Rs1.314 billion. FY2025 annual report.
• FY2025 year-end employees: 59 non-factory and 221 factory employees. FY2025 annual report.
• Nine months to 31 March 2026 revenue: Rs2.444 billion, up 34% year on year. Latest nine-month report.
• Nine-month gross margin to March 2026: 11.7%; March-quarter gross margin: 2.8%. Latest nine-month report.
• Nine-month profit after tax to March 2026: Rs10.0 million; operating cash inflow: Rs139.7 million. Latest nine-month report.
• Equity at 31 March 2026: negative Rs8.492 billion; current liabilities: Rs9.172 billion. Latest nine-month report.
• Short-term borrowings at 31 March 2026: Rs5.044 billion; interest/markup payable: Rs2.596 billion. Latest nine-month report.
• PSX status: risk-warning alert for continuous listing-rule violation, with suspension or delisting risk. PSX company profile.
How to read this company’s results
Start with revenue mix and gross margin. Compare exports with local processing and cloth sales, then look at UK and US concentration. Gross margin, not sales growth alone, shows whether order pricing and utilisation covered raw material, dyes, packing, conversion, labour and energy. The March 2026 quarter demonstrates why this test matters.
Next, separate operating profit from other income. Remove unrealised property gains, gains on recognising loans at fair value and asset-disposal gains to see what textiles earned. Rental income is recurring only if leases and cash collection continue; fair-value movements are not cash. Compare profit with operating cash flow, inventory, receivables, payables and customer advances.
Then rebuild the financing picture. Add long-term finance, leases, short-term borrowing and markup payable; identify which amounts are overdue, litigated or restructured; and note that the company omits cost of funds on disputed facilities unless a court awards it. The reported finance-cost line is therefore not the same as the full economic cost of the capital structure.
Finally, track repair milestones: cash paid under each settlement, properties sold and proceeds applied to lenders, court decisions, the related-party financing balance, PSX compliance status, current assets versus current liabilities, and whether negative equity shrinks. Sustainable improvement would require positive gross margins, operating cash generation and measurable debt reduction at the same time.
Sources
• Amtex Limited — FY2025 audited annual report. Open report.
• Amtex Limited — unaudited report for the nine months ended 31 March 2026. Open report.
• Amtex Limited — FY2024 and FY2025 corporate briefing. Open briefing.
• Amtex Limited — official company profile. Open profile.
• Amtex Limited — official garment product range. Open garment range.
• Amtex Limited — official fabric product range. Open fabric range.
• Pakistan Stock Exchange — AMTEX profile, disclosures and risk warning. Open PSX profile.