Company Name: AN Textile Mills Limited
Ticker: ANTM
AN Textile Mills is a single-site yarn spinner whose economics are governed by utilisation, raw-fibre cost, energy intensity and access to working capital. The mill produced much more yarn in FY2025 and invested again in machinery and solar equipment during FY2026, yet its gross margin narrowed to almost zero in the latest nine-month period. Production momentum has therefore not yet become durable earnings. Latest nine-month report.
This article distinguishes reported facts, management statements and AlphaGen inference. It explains how the company works and what to monitor; it does not provide buy or sell advice.
What AN Textile Mills does
AN Textile Mills Limited was incorporated in 1982, listed on the Pakistan Stock Exchange in 1989 and was formerly Ishaq Textile Mills Limited. Its registered office and mill are at 35-Kilometres Sheikhupura Road, Faisalabad. The principal activity is manufacturing, selling and trading yarn and cloth, although the current operating disclosures are overwhelmingly those of a spinning business. PSX company profile.
The official website describes a spinning unit producing polyester-cotton and cotton yarn in multiple blends for national and international markets. That is management’s product description. The audited FY2025 accounts, however, say all sales during that year were made within Pakistan, so export reach should not be inferred from the website alone. Official company overview.
The financial statements are prepared for one reportable segment and identify no subsidiary or associate contribution. This makes ANTM analytically simpler than a diversified textile group: the core question is whether one spinning operation can convert fibre, labour and energy into yarn at a spread wide enough to cover overhead, financing and turnover-based tax. FY2025 annual report.
How the production process creates value
Spinning starts with cotton or man-made fibre. Material is opened and cleaned, fibres are carded and drawn into more uniform slivers, roving prepares the strand, and ring-spinning or related machinery turns it into yarn. Winding, quality checks, packing and dispatch complete the cycle. ANTM’s public manufacturing page calls this a spinning process but does not publish a detailed machine-by-machine configuration. Official manufacturing page.
Economically, the mill buys fibre and sells consistency. Buyers care about count, strength, contamination, blend and delivery reliability. Fine counts require slower machine speeds, and the FY2025 capacity note specifically cites production of fine counts, normal repairs and maintenance as reasons output remained below theoretical capacity.
Cotton and polyester-related inputs are the major raw-material exposure. Electricity, gas or other fuel powers humidification, blow-room, carding, drawing, spinning, winding and supporting systems. Labour and stores keep a large number of spindles running. The accounts do not quantify imported fibre or imported energy, so a precise import ratio would be invention. At June 2025 the company reported no foreign-currency receivable or payable balance; indirect exchange-rate exposure through machinery, fibre or energy prices may still exist but cannot be measured from the filing.
Scale, assets and operating footprint
For FY2025, 100% theoretical capacity converted to 20s-count yarn was 14.275 million kilograms across 1,095 shifts. Actual production was 10.994 million kilograms across 1,087 shifts. A year earlier, actual production was 7.425 million kilograms against 14.314 million kilograms of theoretical capacity. Audited capacity note.
AlphaGen inference: actual production equalled roughly 77.0% of the stated FY2025 theoretical base, up from about 51.9% in FY2024. This is a calculated utilisation indicator, not a company-reported ratio. It does not adjust for product mix, because fine yarn counts run more slowly than coarse counts.
The workforce expanded sharply: year-end employees increased to 911 at June 2025 from 531 a year earlier, while the average workforce rose to 694 from 432. That increase is consistent with a larger operating footprint, but the annual report does not divide headcount between production, sales and administration. FY2025 employee note.
Property, plant and equipment had a carrying value of PKR 1.247 billion at June 2025. By March 2026 it had risen to PKR 1.282 billion after PKR 80.1 million of additions, comprising PKR 50.2 million of plant and machinery, PKR 22.9 million of solar equipment and PKR 7.1 million of vehicles. Solar spending is a tangible response to energy-cost pressure, though no generation or savings data are disclosed. March 2026 interim notes.
Customers, pricing and route to market
FY2025 gross invoicing comprised PKR 4.909 billion of yarn and PKR 397.5 million of waste, less PKR 814.0 million of sales tax, producing net revenue of PKR 4.492 billion. All sales were domestic. The report says significant revenue comes from customers who pay in advance, while management sets credit limits and reviews counterparty quality. Revenue and credit-risk notes.
Filings do not identify individual customers, suppliers or market share. The defensible customer categories are industrial textile buyers, yarn traders and downstream manufacturers. Waste sales create a secondary recovery stream. Revenue is recognised when the customer obtains control under the contract, so shipment volume, yarn count and market price determine the top line.
Pricing power is limited because yarn is broadly commodity-like, while cotton, polyester and energy costs can move independently. Product quality, count mix, delivery reliability and relationships can differentiate the mill, but the financial evidence shows ANTM has recently operated with a very narrow spread. In such a model, a small adverse move in selling price or fibre cost can erase gross profit.
Revenue, costs and margin economics
FY2025 revenue rose 29.8% to PKR 4.492 billion from PKR 3.460 billion, but cost of sales rose 30.9% to PKR 4.440 billion. Gross profit fell to PKR 52.4 million from PKR 68.1 million, reducing gross margin to about 1.17% from 1.97%. The business grew volume without gaining a stronger manufacturing spread. FY2025 audited profit and loss account.
Raw materials consumed were PKR 2.666 billion. Fuel and power were PKR 1.223 billion, salaries and wages in cost of sales PKR 310.9 million, stores and spares PKR 121.3 million, packing PKR 43.0 million and production depreciation PKR 55.4 million. Raw materials and energy together represented about 87.6% of disclosed manufacturing cost before inventory movements, illustrating why fibre buying and power efficiency dominate the economics. FY2025 cost-of-sales note.
Operating loss improved to PKR 16.4 million from PKR 21.1 million because administrative expense and other expense fell, but finance cost remained PKR 49.6 million. A PKR 56.2 million turnover levy then exceeded the operating loss and finance cost individually. The final loss after tax was PKR 103.0 million, compared with PKR 110.4 million in FY2024. In a low-margin company, minimum tax on turnover can deepen losses even when taxable profit is absent.
Management’s October 2025 corporate briefing described high energy tariffs, volatile cotton prices, competitive imports, weak demand and regional competition as sector challenges. It identified modern machinery, energy efficiency, product diversification and cleaner production as routes to resilience. These are management views, not forecasts guaranteed by the company. Official corporate briefing.
The latest result: more sales, weaker economics
For the nine months ended 31 March 2026, unaudited sales increased 5.5% to PKR 3.525 billion from PKR 3.341 billion. Yet gross profit collapsed to PKR 15.1 million from PKR 89.8 million, taking gross margin to about 0.43% from 2.69%. Administrative expense rose to PKR 60.1 million from PKR 43.8 million. March 2026 profit and loss statement.
The directors’ summary contains two apparent typographical inconsistencies, but the primary statement and arithmetic reconcile: comparative gross profit is PKR 89.8 million, and current-period finance cost is PKR 36.9 million. Using those statement figures, loss before levy and tax was PKR 91.7 million; after PKR 44.1 million of levy and a deferred-tax credit, loss after tax reached PKR 101.2 million, versus PKR 44.0 million a year earlier.
The March quarter alone produced PKR 1.118 billion of sales and PKR 11.1 million of gross profit, followed by a PKR 34.2 million net loss. The sequence from the September, December and March filings shows sales continuing, but cumulative profitability weakening rather than a one-quarter shutdown. Official interim-report archive.
Balance sheet and cash conversion
Total assets grew to PKR 2.279 billion at March 2026 from PKR 1.958 billion at June 2025. Inventory increased to PKR 536.0 million from PKR 304.2 million, while trade debts fell to PKR 128.0 million from PKR 155.7 million. Current assets rose to PKR 992.2 million, but current liabilities also increased to PKR 1.284 billion. March 2026 statement of financial position.
AlphaGen inference: the current ratio improved to roughly 0.77 from 0.65, but remained below one. Higher inventory tied up PKR 231.8 million during the nine months, while trade and other payables supplied PKR 232.1 million. Suppliers effectively financed much of the stock build; that is useful liquidity, but it is not the same as cash generated from profitable operations.
Net cash used in operating activities was PKR 138.0 million for the nine months. Capital expenditure consumed another PKR 80.1 million. Financing bridged the gap: the company obtained PKR 250.0 million of director loans while net short-term borrowings fell PKR 40.6 million. Closing cash was only PKR 12.0 million. March 2026 cash-flow statement.
At June 2025, short-term borrowings were PKR 675.9 million: PKR 346.8 million from banks and PKR 329.1 million from related parties. Bank facilities were secured by hypothecation of stocks and pledges of cotton, tencel and yarn, with disclosed mark-up rates of 13.59% to 21.72%. Inventory is therefore both an operating asset and lending collateral. FY2025 borrowing note.
This funding structure helps the mill keep buying fibre and running machines, but it also narrows room for error. If yarn prices weaken while stock is pledged, or if receivables collect slowly, liquidity pressure can force sales at unattractive prices. Director support reduces immediate dependence on external lenders, yet recurring operating cash remains the more durable measure of self-sufficiency.
Competitive position and cyclicality
ANTM’s strengths are a long operating history, one established Faisalabad site, materially higher production in FY2025, a larger workforce and continued investment in machinery and solar equipment. Its main weakness is economic rather than mechanical: a 0.43% nine-month gross margin leaves almost no cushion for administration, finance or turnover levy.
A favourable environment combines affordable fibre, reliable energy, high machine utilisation, a profitable yarn-count mix, timely customer advances and lower interest rates. An adverse environment combines expensive cotton or polyester, grid or gas disruption, weak yarn demand, competitive imports, slower fine-count production and expensive inventory funding.
Competitive claims should remain modest. The company discloses no verified market share, named customers or export sales in FY2025. It can improve its position through energy efficiency, consistent quality and product mix, but readers should look for evidence in gross margin and cash conversion rather than rely on broad descriptions of premium yarn.
Growth avenues, structural strengths and risks
The website says spindle expansion is intended to lift daily yarn-bag production, while the latest accounts document actual spending on plant, machinery and solar. The first is a management statement without a dated completion schedule; the second is a reported capital allocation. Future growth should be judged by actual kilograms produced, saleable mix, gross profit per kilogram and energy cost—not by installed capacity alone. Company website.
Working-capital discipline is the second avenue. More customer advances, faster receivable collection and careful fibre purchasing can reduce borrowing. Solar generation may reduce purchased-power exposure. Higher-value yarn counts may support price, but can also slow machines; the economic test is contribution margin after slower throughput.
The principal risks are fibre-price volatility, energy cost and reliability, interest rates, thin margins, minimum tax, customer credit, pledged inventory and dependence on director funding. Regulatory and wage changes affect costs. The absence of a disclosed foreign-currency balance reduces direct balance-sheet FX risk at June 2025, but does not remove indirect import-price exposure.
Key facts and figures
• Incorporated in 1982; listed on PSX in 1989; June financial year-end. PSX profile.
• Principal operation: manufacturing, sale and trading of yarn and cloth at the Faisalabad mill. FY2025 annual report.
• FY2025 theoretical capacity: 14.275 million kg; actual production: 10.994 million kg. Audited capacity note.
• FY2025 year-end employees: 911; average employees: 694. Audited employee note.
• FY2025 net revenue: PKR 4.492 billion; all sales made in Pakistan. Audited revenue note.
• FY2025 gross profit: PKR 52.4 million; gross margin: about 1.17%. Audited profit and loss account.
• FY2025 loss after tax: PKR 103.0 million; loss per share: PKR 10.66. Audited profit and loss account.
• FY2025 raw materials consumed: PKR 2.666 billion; fuel and power: PKR 1.223 billion. Audited cost note.
• March 2026 nine-month sales: PKR 3.525 billion; gross profit: PKR 15.1 million. Latest interim statement.
• March 2026 nine-month loss after tax: PKR 101.2 million. Latest interim statement.
• March 2026 inventory: PKR 536.0 million; total assets: PKR 2.279 billion. Latest interim balance sheet.
• Nine-month operating cash outflow: PKR 138.0 million; capital expenditure: PKR 80.1 million. Latest interim cash flow.
How to read this company’s results
Start with physical output. Compare actual kilograms with theoretical capacity and note the number of shifts and yarn-count mix. Higher utilisation is usually positive, but fine counts can reduce speed. Pair output with headcount and plant additions to see whether efficiency is improving.
Next rebuild the manufacturing spread. Compare sales, raw-material consumption, fuel and power, labour, stores and inventory movements. Gross profit and gross margin matter more than revenue growth alone. At ANTM, a one-percentage-point change in gross margin is economically large relative to overhead.
Then separate core operations from financing and tax. Follow operating profit, bank mark-up, related-party funding and turnover levy. A loss can persist even when machines run harder if gross profit cannot cover administration and financing. Check whether lower interest rates actually reduce finance cost.
Finally, trace working capital into cash. Inventory accumulation is not automatically bad, but it consumes funding; trade payables can temporarily offset it. Compare operating cash flow with capital expenditure, director loans, bank borrowings and closing cash. The strongest evidence of progress would be sustained utilisation, wider gross margin and positive operating cash without a growing reliance on suppliers or directors.
Sources
• AN Textile Mills Limited — audited annual report for the year ended 30 June 2025. Open report.
• AN Textile Mills Limited — unaudited report for the nine months ended 31 March 2026. Open report.
• AN Textile Mills Limited — half-year report for the period ended 31 December 2025. Open report.
• AN Textile Mills Limited — first-quarter report for the period ended 30 September 2025. Open report.
• Pakistan Stock Exchange — ANTM profile, financials and announcements. Open PSX profile.
• AN Textile Mills Limited — official company overview and manufacturing page. Open company page.
• AN Textile Mills Limited — official financial-statement archive. Open archive.
• AN Textile Mills Limited — corporate briefing material dated 14 October 2025. Open briefing.