Cost-cuts send Gadoon’s bottom line soaring seven-fold

Gadoon Textile Mills Limited (PSX: GADT) has just delivered one of the sharpest earnings rebounds on record: profit after tax for the nine months to March 2025 leapt to Rs2.0 billion, nearly seven times the Rs278 million booked a year earlier.

The turnaround rests squarely on an aggressive efficiency drive – new high-speed spinning frames, a 16.9 MW solar-power array (with another 10.8 MW under installation) and tighter working-capital discipline – that has whittled energy and financing outlays to their lowest in three years. Management says the solar switch alone is trimming its electricity bill by Rs5–7 per kWh, with a target blended tariff of Rs30/kWh once the second tranche is commissioned.

At its twin plants in Swabi (Khyber Pakhtunkhwa) and Landhi (Karachi), Gadoon spins a 75:25 blend of locally sourced and imported cotton into carded, combed and polyester-cotton yarn for export and for the group’s home-textile affiliates.

The company has recently begun stepping up its own value-added output – knitted greige and dyed fabric – to protect margins from raw-cotton swings. In 2022 it ventured further afield, commissioning a midsized dairy farm and UHT processing unit aimed at the institutional wholesale market. The project has run into headwinds from new sales-tax levies on corporate dairy sales, but management insists it will “continue to build out a branded dairy footprint” once the tax regime stabilises.