Zephyr Textiles Limited: performance and outlook

Zephyr Textiles Limited (ZTL) slipped into a net loss of Rs39.97 million in the nine-month period of the current fiscal year, Business Recorder reported, compared with a profit of Rs10.47 million in the same stretch a year earlier. Net sales fell 11.95 percent to Rs5681.47 million as export orders weakened amid geopolitical tensions and sharper global competition. Profit before tax rose 10.86 percent to Rs38.798 million, but levy charges of Rs70.32 million pushed the company into the red.

Gross profit dropped 2.52 percent, while the gross margin rose to 10.39 percent from 9.39 percent, helped by a greater focus on value-added goods. Operating profit declined 25.57 percent, with the operating margin at 3.24 percent compared with 3.83 percent a year earlier. Finance cost fell 31.58 percent even as short-term and long-term loans both rose. Loss per share stood at Rs0.67, compared with earnings of Rs0.18 per share in 9MFY25.

For 2025, net sales eased 1.36 percent to Rs8279.47 million, while net profit fell 96 percent to Rs1.82 million. Management said it is pursuing export markets with value-added products and has raised solar capacity at its towel unit from 450 kwh to 950 kwh, with another 358 kwh plant under process at its weaving unit. The company also said efficient procurement and sound financial management would help it cope with renewed inflation and tighter monetary conditions.