Kohinoor Mills Limited (KML) reported earnings per share of PKR 0.46 for FY25, compared to loss per share of PKR 0.04 in FY24. Furthermore, in 1QFY26, the company reported earnings per share of PKR 0.11, compared to earnings per share of PKR 0.02 in the same period last year (SPLY). The Weaving Division has an annual capacity of 55 million meters. Production volumes have increased significantly following recent BMR initiatives, rising from 39 million meters in 2019 to approximately 53 million meters per annum.
The company’s newest division began operations in September 2025, aligning with its long term roadmap to gradually transition into a fully integrated garment manufacturer.
The company Western Fashion segment remains the dominant product, contributing around 80% of revenue, while the ethnic and other segments contribute roughly 10% each. Management plans to rebalance the portfolio over time, aiming for a more even revenue distribution across five product segments. The company’s first apparel factory is operational, with an annual production capacity of 5 million garments.
Over the next decade, management intends to establish five factories of similar scale, with the objective of converting its existing fabric customers into garment customers. Phase 1 of the Apparel Division is already live, expected to contribute USD 12 million in revenue. In Phase 2, the company plans to increase production to 10,000 garments per day, targeting USD 40 million in revenue.
This will be followed by Phase 3, which involves scaling output to 17,000 garments per day through a double shift model, with targeted revenue of USD 72 million. The Apparel segment is expected to reach break even at a production level of 5,000–7,000 garments per day, a milestone management expects to achieve within the next two quarters. The company currently has 4.5 MW of solar power installed, with an additional 2.7 MW under commissioning and expected to be operational by the end of the current month. Solar currently provides 20% of total electricity needs. A further 3 MW expansion is planned for Q3 FY26. Management anticipates a return to historical margin levels or potentially higher during the coming year, subject to stabilization in energy costs and tariff structures. The ongoing ramp up of the Apparel Division is expected to help the company surpass its previous revenue peak.
Geographically, 30–35% of garment sales are directed to the US market, 35–40% to Europe, with the remaining share distributed across other regions. Pakistan’s domestic cotton output continues to decline, falling from historical levels of 13–14 million bales to 7–8 million bales, increasing the country’s dependence on imports. At the same time, global buyers are diversifying their sourcing away from China and Bangladesh, positioning Pakistan as an increasingly attractive alternative. This shift presents an opportunity for local textile exporters to capture a larger share of regional sourcing volumes.
Important Disclosures
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