A.J. Textile Mills Limited (AJ Textile) earned about Rs 601 million in profit after tax in FY26. In FY25, profit was about Rs 272 million. That is a rise of roughly 121%, based on the rounded figures.
The Pakistan Credit Rating Agency (PACRA) shared the numbers in a press release dated September 26, 2026. It also kept the company’s ratings unchanged.
What Happened?
Sales did not grow. PACRA says revenue stayed broadly stable at around Rs 15.2 billion in FY26. Profit rose because margins improved.
PACRA says this came from better gross profit and careful cost control. It also notes that finance costs and taxes still weigh on the company.
Key Details
| Detail | FY26 | FY25 |
|---|---|---|
| Profit after tax | ~R s601 million | ~Rs 272 million |
| Gross margin | ~9.0% | ~6.0% |
| Net margin | ~4.0% | ~1.8% |
| Cash from operations | ~Rs 1.7 billion | ~Rs 529 million |
| Total borrowings | ~Rs 3.9 billion | ~Rs 4.2 billion |
| Borrowings as share of total capital | ~32% | ~35% |
PACRA puts the company’s equity at around Rs 8.3 billion. It calls liquidity adequate. The company also spent about Rs 1.2 billion in FY26 to upgrade and replace its assets.
Rating Stays the Same
| Rating | Current (Sep 26, 2026) | Previous (Sep 26, 2025) |
|---|---|---|
| Long term | A- | A- |
| Short term | A2 | A2 |
| Outlook | Stable | Stable |
PACRA rates a company’s ability and willingness to meet its obligations. It says its opinion is not advice to buy, sell or hold any security.
How the Company Is Handling Energy Costs
PACRA calls energy cost a key problem for Pakistan’s spinning industry. AJ Textile is trying to manage it in three ways:
- It runs an 11MW solar energy project.
- It gets hydropower through a wheeling arrangement with the Pakhtunkhwa Energy Development
- Organization (PEDO).
- It is looking at Battery Energy Storage Systems (BESS).
What This Means for Pakistan’s Spinning Sector
PACRA lists several risks for spinners. These include high energy costs, reliance on imported cotton, and climate risk to local cotton crops. Competition from regional producers and high working capital needs add pressure.
Higher freight and energy costs can also squeeze margins. PACRA says lower interest rates and policy steps on raw-material imports have given the sector some relief.
About AJ Textile
The company began operations in 1993 as a private limited company. It belongs to the Aziz Group, which also works in real estate, FMCG and chip-board production.
Its yarn plant has an effective capacity of about 115,000 spindles. Around 95% of sales are local. Exports make up about 5%.
Afan Aziz is the CEO and holds about 65%. Mohsin Aziz chairs the board and holds about 34%.
What the Ratings Depend On
PACRA says the ratings rest on the company keeping up its profit and cash flow. It also wants careful debt and working capital control, steady spending on renewable energy, and enough liquidity.
Stronger governance and results that match the company’s projections also remain important for the ratings.
What Is Not Yet Confirmed
The press release does not give the exact FY26 period dates. It also leaves out exact revenue, profit before tax and EBITDA figures. All numbers are PACRA’s rounded estimates. It carries no statement from AJ Textile’s management.
Where Things Stand
PACRA has kept AJ Textile’s ratings at A-/A2 with a stable outlook. It reports profit after tax of about Rs 601 million for FY26, up from about Rs 272 million.
