Stylers bets big on increased production capacity

Stylers International Limited, one of Pakistan’s newest listed textile names, has just come off a year of strong growth followed by a slightly slower opening quarter to the new financial year. Its latest corporate briefing, held at the end of November, shows a company that is still expanding volumes and investing heavily, but also feeling the same tax and cost pressures that have dogged the wider textile sector.

For the financial year ended June 2025 (FY25), Stylers’ net sales climbed to about Rs20.7 billion, up 44% from roughly Rs14.4 billion in FY24. Gross profit rose from around Rs3.0 billion to Rs3.8 billion, an increase of 29%, as the company shipped more garments to overseas buyers. The top line is overwhelmingly export-driven: ratings agency PACRA notes that export sales reached just over Rs20.3 billion in FY25, while domestic sales contributed a modest Rs0.3 billion.

The headline profit, however, moved in the opposite direction. Profit after tax dropped from around Rs1.5 billion in FY24 to Rs1.3 billion in FY25, a decline of 14%. Earnings per share eased from roughly Rs3.4 to Rs2.6, even as revenue grew strongly. The culprit was margin compression: the gross margin narrowed from 21% to 18%, as higher raw-material costs, energy prices and an upward revision in the minimum wage all fed into cost of sales.