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. The content in this publication is expensive to produce. But unlike other journalistic outfits, business publications have to cover the very organizations that directly give them advertisements. Hence, this large source of revenue, which is the lifeblood of other media houses, is severely compromised on account of Profit’s no-compromise policy when it comes to our reporting. No wonder, Profit has lost multiple ad deals, worth tens of millions of rupees, due to stories that held big businesses to account. Hence, for our work to continue unfettered, it must be supported by discerning readers who know the value of quality business journalism, not just for the economy but for the society as a whole.To read the full article, subscribe and support independent business journalism in Pakistan
