Company Name: Buxly Paints Ltd
Ticker: BUXL
Buxly Paints is a branded coatings seller with outsourced production and heavy working-capital demands. It markets decorative and industrial ranges, buys materials and packaging, and pays associated company Berger Paints Pakistan Limited to process and pack them. Buxly avoids a conventional factory footprint but still owns inventory, grants customer credit and depends on one related manufacturer for conversion. FY2025 audited annual report
What Buxly Paints does
Buxly was incorporated in Pakistan in April 1954, became a public limited company in May 1985 and is listed on the Pakistan Stock Exchange. Its principal activity is the manufacture and sale of paints, pigments, protective surface coatings, varnishes and related products. The company traces the brand to a coatings business established in British India in 1933. Company history and profile
The portfolio spans decorative paints for buildings; air-drying enamels; stoving finishes cured at elevated temperature; protective systems for metal, concrete and harsh environments; heat-resistant coatings; thinners and paint removers; and the Aerobux range. The corporate briefing groups the commercial opportunity into decorative retail and projects, government and marine business, protective coatings, and automotive and general industrial coatings. This mix matters because a litre of architectural paint sold through a dealer and a specified industrial coating sold into a project do not have the same selling cycle, technical-service burden, price sensitivity or margin. Official product catalogue
Buxly has its registered office in Karachi and offices in Lahore and Islamabad. Its contact page lists sales responsibility across Karachi, lower Sindh, Lahore, Islamabad, Peshawar and Multan. This establishes a multi-region commercial network, not national market share. Named users on the website are company-provided marketing context, not a verified list of current customers. Official contact and sales network
The toll-manufacturing model
The most important fact about Buxly’s operating model is that Berger Paints Pakistan Limited performs the physical processing and packing. Under the agreement described in the audited accounts, Buxly supplies materials, packaging, filling components and other ingredients. Berger processes those inputs, packs the products and delivers them to Buxly or to a party designated by Buxly in Pakistan. Buxly pays the toll-manufacturing charge; it does not earn that fee. The arrangement therefore separates the brand, inventory, route to market and customer credit risk from factory conversion. FY2025 audited annual report
Economically, this is an asset-light production model, but not a low-capital business. Buxly avoids having to finance and operate a full paint plant, while still carrying large stocks and trade receivables. At 30 June 2025, property and equipment were PKR 171.3 million, but trade debts were PKR 273.7 million and inventory PKR 82.2 million. By 31 March 2026, trade debts had climbed to PKR 293.3 million. The balance sheet is consequently driven more by the cash tied up after a sale than by annual capital expenditure. March 2026 interim report
The production relationship is also a concentration risk. Berger was a 19% shareholder at 30 June 2025 and an associated company. Buxly purchased PKR 363.9 million of materials from Berger and incurred PKR 44.6 million of toll charges during FY2025. The amount payable to Berger reached PKR 327.2 million at year-end, up from PKR 221.6 million. The arrangement can lower duplication of plant and technical infrastructure, but a change in commercial terms, service levels, credit periods or production continuity at this single counterparty could flow rapidly into Buxly’s availability, cost and cash position. FY2025 audited annual report
How coatings become revenue
Coatings combine binders or resins, pigments, solvents or water, additives and packaging to achieve specified colour, finish, adhesion and protection. Buxly does not disclose formulas or sourcing shares, so none should be assumed. Its audited model says Buxly provides raw and packing materials while Berger processes and packs them; its quality policy says incoming materials and finished goods are tested against documented standards. Official quality policy
Revenue is recognised from product sales, so the earnings chain begins with demand and net selling price. FY2025 gross sales were PKR 853.5 million, from which PKR 130.2 million of sales tax and PKR 136.2 million of discounts were deducted to reach PKR 587.1 million of net sales. Discounts equalled roughly 16% of gross billings. That makes discount discipline a first-order economic variable: a business can move more volume without improving net revenue if rebates, dealer support or project pricing absorb the gain. FY2025 audited annual report
The next layer is conversion cost. FY2025 cost disclosures show PKR 363.9 million of raw-material purchases, PKR 68.3 million of packing-material purchases and PKR 44.6 million of toll-manufacturing charges. Berger produced 1.524 million litres under the arrangement, 3.0% more than 1.480 million litres in FY2024. Yet net sales fell 5.8%. The contrast suggests that product mix, timing, price and discounts can matter as much as physical output. It should not be read as proof of unsold inventory or price erosion without more detailed volume and price data. FY2025 audited annual report
Revenue, margins and the cost structure
For FY2025, net sales declined to PKR 587.1 million from PKR 623.0 million. Gross profit nevertheless increased 4.2% to PKR 111.9 million, lifting the gross margin to 19.1% from 17.2%. This was the year’s constructive operating feature: material, packing, product-mix and pricing economics collectively improved relative to net revenue. The audited report does not isolate the contribution of each driver, so attributing the gain to any single cause would be speculation. FY2025 audited annual report
The gross-margin improvement did not survive the rest of the income statement. Distribution and selling expense rose 9.2% to PKR 61.0 million, while administrative expense rose 62.4% to PKR 46.1 million. Combined operating expenses therefore consumed PKR 107.0 million of the PKR 111.9 million gross profit. Other income rose to PKR 6.5 million and finance cost fell 27.3% to PKR 7.8 million, but profit before levies was only PKR 3.3 million. Levies and income tax then produced a PKR 4.1 million net loss, versus PKR 7.0 million profit in FY2024. FY2025 audited annual report
The nine months to 31 March 2026 were weaker. Net sales declined 6.5% year on year to PKR 425.1 million and gross profit fell 11.7% to PKR 76.1 million. Gross margin narrowed to 17.9% from 19.0%. Distribution and administrative expenses together increased 27.7% to PKR 97.2 million, exceeding gross profit by PKR 21.1 million before other income. Finance cost fell to PKR 1.1 million from PKR 6.2 million, but the company still recorded a PKR 20.2 million loss, compared with a PKR 0.4 million profit in the prior comparable period. March 2026 interim report
Working capital and cash conversion
Buxly’s customer credit policy allows up to 90 days, but trade debts rose 25.7% during FY2025 to PKR 273.7 million even as sales fell. The balance equalled about 5.6 months of annual net sales, a rough comparison rather than formal days sales outstanding. The company recorded a PKR 2.4 million expected-credit-loss charge, and the ageing table included PKR 26.9 million of impaired receivables. FY2025 audited annual report
FY2025 operating cash flow was positive PKR 2.7 million, improved from a PKR 34.9 million outflow, but small beside PKR 111.9 million of gross profit. The cash-flow bridge explains why: trade debts absorbed PKR 58.3 million and taxes, levies and finance payments absorbed further cash, while an PKR 81.6 million increase in payables funded much of the gap. Cash and bank balances were PKR 47.2 million, but after deducting PKR 83.9 million of running finance, reported cash equivalents were negative PKR 36.7 million. FY2025 audited annual report
By 31 March 2026, operating cash generation had improved to PKR 77.1 million, largely because trade and other payables increased by PKR 126.3 million. The company used PKR 84.3 million in financing cash flow, including repayment of the PKR 83.9 million short-term borrowing, leaving cash of PKR 34.0 million and no short-term borrowing on the statement date. This is genuine debt reduction, but it was financed chiefly through supplier credit rather than through operating profit. Trade and other payables had risen to PKR 483.1 million, including the extended-credit relationship with Berger. March 2026 interim report
Assets, property and organisational scale
Buxly is small in organisational and equity-market terms. The audited report recorded 26 permanent employees at 30 June 2025 and 1.44 million ordinary shares; PSX reports 40% free float. This compact scale helps explain why outsourced conversion is structurally important and why execution across sales, credit control and quality assurance matters. PSX company profile
Buxly leased part of its land to Berger, which built a production and warehouse facility for its own use. The report says the warehouse transfers to Buxly without payment when the ten-year lease expires. Buxly recorded a PKR 13.5 million long-term receivable at June 2025. Readers should separate rent and other income from recurring coatings margin. FY2025 audited annual report
The March 2026 interim balance sheet showed total assets of PKR 646.6 million and equity of PKR 163.1 million. The accumulated loss widened to PKR 26.2 million. A large PKR 168.9 million revaluation reserve within equity means book equity is not simply a stock of retained operating profits. For analysis, it is useful to track both the accounting asset base and the ability of the core paint operation to generate cash before relying on revaluation reserves, other income or extended supplier credit. March 2026 interim report
Competitive position and operating dependencies
Buxly competes through product breadth, a long-lived brand, technical positioning and regional reach. Beyond decorative paint, it addresses marine, protective, heat-resistant, automotive and general industrial applications, where specification and technical service can matter more than shelf visibility. The corporate briefing presents these as growth avenues but gives no independently verified market share. November 2025 corporate briefing
Its structural dependencies are clear. First is Berger: it is supplier, toll manufacturer, major creditor, associated company and 19% shareholder. Second is input economics: changes in resins, pigments, solvents, additives and packaging can affect Buxly through purchase prices and toll terms even when factory energy is borne operationally by the manufacturer. Third is customer credit, particularly where institutional and project sales have long approval and collection cycles. Fourth is regulation and taxation, including product, environmental, labour and sales-tax compliance. FY2025 audited annual report
The audited risk note reported no direct foreign-currency exposure at 30 June 2025. Indirect sensitivity can still arise if suppliers reprice imported or import-parity inputs. Outsourcing also reduces Buxly’s direct energy use, but energy can affect the toll manufacturer’s costs and future commercial terms. These are AlphaGen inferences, not company forecasts. FY2025 audited annual report
Favourable and adverse environments
A favourable environment combines healthy construction and refurbishment, industrial maintenance spending, infrastructure and defence orders, stable input prices, disciplined discounting and prompt customer collections. In that setting, Buxly can use Berger’s installed production capability without funding a matching factory and can spread its commercial overhead across more litres and higher-value coatings. Lower interest rates help too, although FY2026 demonstrates that lower finance cost cannot rescue a weak operating result on its own.
An adverse environment combines soft demand, aggressive discounting, input inflation, delayed project payments and rising overhead. Buxly is especially exposed when receivables grow faster than sales. Management’s March 2026 review called the industry highly competitive, cited economic, geopolitical and supply-chain challenges, and said the company would target underserved industries and projects. Those are management priorities, not assured outcomes. March 2026 interim report
Key facts and figures
• FY2025 net sales: PKR 587.1 million, down 5.8% from FY2024. FY2025 audited annual report
• FY2025 gross profit: PKR 111.9 million; gross margin 19.1%, up from 17.2%. FY2025 audited annual report
• FY2025 net result: PKR 4.1 million loss versus PKR 7.0 million profit; loss per share PKR 2.82. FY2025 audited annual report
• FY2025 toll production: 1.524 million litres, up 3.0%; this is disclosed production, not stated capacity. FY2025 audited annual report
• FY2025 raw-material purchases: PKR 363.9 million; packing purchases: PKR 68.3 million; toll charges: PKR 44.6 million. FY2025 audited annual report
• 30 June 2025 trade debts: PKR 273.7 million; inventory: PKR 82.2 million; trade and other payables: PKR 356.8 million. FY2025 audited annual report
• FY2025 operating cash flow: positive PKR 2.7 million, versus negative PKR 34.9 million in FY2024. FY2025 audited annual report
• Nine months to 31 March 2026 sales: PKR 425.1 million, down 6.5%; gross margin: 17.9%, down from 19.0%. March 2026 interim report
• Nine months to 31 March 2026 net loss: PKR 20.2 million; loss per share: PKR 14.03. March 2026 interim report
• 31 March 2026 cash: PKR 34.0 million; short-term borrowing: nil; trade and other payables: PKR 483.1 million. March 2026 interim report
• 31 March 2026 total assets: PKR 646.6 million; equity: PKR 163.1 million. March 2026 interim report
• 30 June 2025 permanent employees: 26; issued shares: 1.44 million; PSX free float: 40%. PSX company profile
How to read this company’s results
Start with net sales after discounts, not gross billings. Compare net-sales growth with production litres where available; a divergence can reveal a mix, pricing, discount or timing issue, but the cause needs disclosure before it can be assigned. Then calculate gross margin. This captures the combined economics of selling price, raw and packing materials, outsourced conversion and product mix.
Next, measure distribution and administrative expense against gross profit. Buxly’s recent problem is below the gross-profit line: in the nine months to March 2026, those two cost categories exceeded gross profit. Separate recurring paint earnings from other income, rental income and finance effects. A result supported by one-off or non-core income is not equivalent to a result generated by selling coatings.
Finally, reconcile profit to cash. Track receivables and their ageing, inventory, amounts owed to Berger, borrowing and operating cash flow before working-capital movements. The healthiest combination is sales growth, stable or rising gross margin, controlled expense, receivables growing no faster than revenue, and cash generation that does not depend on a large rise in payables.
What to monitor next
The first monitor is whether sales recover in the final quarter of FY2026 and whether gross margin returns toward the FY2025 level. The second is expense discipline: distribution and administration must grow more slowly than gross profit for operating leverage to turn constructive. The third is the quality of cash generation—particularly whether trade debts fall and whether payables to Berger normalise without a renewed increase in bank borrowing.
Also watch disclosure on product and customer mix, the toll agreement, related-party credit terms, expected-credit-loss provisions and the property arrangement with Berger. On 29 April 2026, the board accepted director Adnan Iqbal’s resignation and appointed chief executive Bashir Ahmed as a director with immediate effect. That does not alter the business model, but it places added importance on clear governance and related-party disclosures because the operating counterparty is also a shareholder and creditor. May 2026 PSX notice
Sources
November 2025 corporate briefing