Sapphire Textile Mills recorded revenue of PkR93.3bn in FY25,

Sapphire Textile Mills Limited (SAPT) held an analyst briefing today to discuss FY25 financial results and provide insight into the outlook. According to AKD Research, the key takeaways from the call are as follows:

To recall, the company recorded revenue of PkR93.3bn in FY25, up 13% YoY from PkR82.4bn, primarily driven by higher sales volumes of value-added products.

· SAPT’s NPAT for FY25 stands at PkR4.0bn (EPS: PkR182.2) in FY25 compared to PkR5.2bn (EPS: PkR238.5) in FY24, mainly due to a decrease in dividend income and higher taxation, despite lower finance cost.

· The company’s sales mix comprises Yarn, Fabric, and Home Textile, which contribute 40%/30%/30% share in revenues, respectively.

· The power mix in FY25 consisted of National Grid (25%), Furnace Oil (4%), Natural Gas (61%) and Solar (10%).

· Company successfully installed 5.38MW of new solar capacity in FY25, bringing the total installed capacity to 16.5MW. Management stated that company is also investing in batteries in FY26 for daytime solar power storage to further increase the share of solar energy in the overall power mix.

· Management highlighted that the company is expanding its retail operations internationally, with two new stores opening in the UK and one in the UAE, further strengthening its global presence and supporting long-term growth.

· Going forward, management expects revenue to decline in FY26 due to the closure of 15-20% of outdated spinning spindles, which are being replaced with modern technology. Gross margins are also expected to come under pressure due to higher costs.

· The scrip is not under formal coverage.

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AKD Research