Faisal Spinning Mills Limited
By PSX Investors Zone · Updated October 23, 2026
Faisal Spinning Mills Limited (PSX: FASM) is a Pakistani textile manufacturer incorporated in 1985. The company manufactures and sells yarn, greige fabric, dyed fabric and home textile products through its spinning, weaving, finishing and home textile operations. Its business performance depends on textile export demand, local and international cotton prices, energy costs, production efficiency, exchange-rate movements and financing expenses. In FY2026, the company reported net sales of approximately Rs 45.84 billion and a net loss of Rs 413.54 million, compared with a net loss of Rs 269.27 million in FY2025. FASM was included as Shariah-compliant in the PSX-KMI All Share Islamic Index recomposition announced in May 2026, based on financial statements as of December 31, 2025. However, its reported debt-to-assets screening ratio was 35.51%, close to the then-applicable 37% threshold. The stricter 33% threshold scheduled for the November 2026 recomposition makes verification of its updated status important. PSX also displays a Risk Warning Alert relating to continuous violations of specified exchange regulations and potential trading suspension or delisting. Investors should assess this regulatory warning separately from the company's Shariah screening and financial performance.
Company Overview
Faisal Spinning Mills Limited (PSX: FASM) is a Pakistani textile manufacturer listed on the Pakistan Stock Exchange. The company was incorporated on January 31, 1985, and is part of the Umer Group.
Its principal business is the manufacture and sale of yarn, greige fabric, dyed fabric and home textile products. Its operations cover spinning, weaving, finishing and home textiles, allowing it to participate in different stages of textile manufacturing.
The company operates manufacturing facilities in Nooriabad and Sheikhupura, including its finishing and home textile operations in the Ferozwatwan area. Its head office is located in Karachi.
Official sources: PSX Company Profile | Umer Group | Faisal Spinning Mills Financial Reports
Business Activities and Products
FASM operates across several interconnected textile activities.
Spinning: Producing yarn from textile fibres for use in downstream textile manufacturing and sale to customers.
Weaving: Manufacturing woven fabrics that can be supplied to other textile businesses or processed further.
Finishing and dyeing: Processing fabric to achieve the required colours, finishes and specifications.
Home textiles: Producing textile products for household use and related markets.
The company's integrated operations provide exposure to several stages of the textile value chain. However, integration does not eliminate industry risks. Cotton prices, energy expenses, production utilization, customer demand, export competitiveness and financing costs can all affect margins.
Financial Performance
Annual financial results
The following figures are reported on the PSX company page. Amounts are in Pakistani rupees.
| Financial metric | FY2026 | FY2025 |
|---|---|---|
| Net sales | Rs 45.84 billion | Rs 46.20 billion |
| Profit/(loss) after tax | Rs (413.54) million | Rs (269.27) million |
| Earnings per share | Rs (41.35) | Rs (26.93) |
| Gross profit margin | 7.61% | 7.95% |
| Net profit margin | -0.90% | -0.58% |
Source: PSX financial information for FASM.
Sales declined by approximately 0.8% in FY2026, while the annual net loss increased from approximately Rs 269.27 million to Rs 413.54 million. Gross profit also declined, and the net profit margin remained negative.
The results indicate that maintaining sales volumes alone was not sufficient to protect profitability. Investors should review the company's annual report for detailed explanations of cost of sales, finance costs, taxation, cash flows, borrowing and changes in working capital.
Quarterly performance
For the quarter ended March 31, 2026, the PSX financial-data page reported sales of approximately Rs 10.89 billion and a net loss of Rs 206.76 million, compared with sales of Rs 11.93 billion and a net profit of Rs 43.30 million in the corresponding quarter of 2025.
This quarterly comparison highlights the pressure on earnings during the year. Investors should use the company's published quarterly reports to examine whether losses arose from lower production, weaker margins, higher financing expenses or other factors.
Sources: PSX company financials and announcements | Official FY2026 annual-report archive
Shariah Compliance Status
Faisal Spinning Mills Limited was included as Shariah-compliant in the PSX-KMI All Share Islamic Index recomposition announced on May 29, 2026. The screening was based on financial information as of December 31, 2025, and the recomposed index became effective on June 5, 2026.
The published screening data reported the following ratios:
| Screening measure | Reported ratio |
|---|---|
| Interest-bearing debt / total assets | 35.51% |
| Non-compliant investments / total assets | 0.91% |
| Non-compliant income / total revenue | 0.22% |
| Illiquid assets / total assets | 76.05% |
| Net liquid assets per share | Rs (1,942.27) |
Source: FASM screening data and official PSX-KMI All Share Islamic Index recomposition notice.
The company was classified as compliant under the published screening methodology for that period. However, its reported debt-to-assets ratio of 35.51% was close to the then-applicable 37% threshold.
PSX announced a revised interest-bearing debt-to-assets threshold of 33%, scheduled to apply from the November 2026 recomposition using June 2026 annual or half-yearly financial statements. Consequently, investors should not assume that the previous classification will continue unchanged. Check the latest official screening result before relying on FASM's Shariah status.
Important PSX Risk Warning Alert
The official PSX company page displays a Risk Warning Alert stating that FASM is in continuous violation of specified clauses, 5.11.1 or 5.11.2, and carries a risk of trading suspension or delisting from the Exchange.
This is a material regulatory consideration. The warning does not, by itself, confirm that the shares have already been suspended or that the company has been delisted. Investors should consult the latest PSX notices to determine the precise issue, applicable requirements and whether the company has subsequently addressed the matter.
Official reference: PSX FASM company page.
Shariah screening and exchange regulatory standing are separate matters. A Shariah-compliant classification does not override an exchange warning.
Dividends and Corporate Actions
For FY2026, the company did not recommend a dividend. The reported annual loss is relevant when assessing the sustainability of future distributions.
Investors should review official PSX announcements for any subsequent board decisions, dividend proposals, entitlement dates or other corporate actions. A previous dividend payment, if any, should not be taken as a guarantee of future income.
Sources: PSX announcements and payouts | FASM annual reports
Key Factors Investors Should Monitor
Cotton and raw-material prices: Cotton-price movements can influence production costs and margins, depending on purchasing practices and inventory timing.
Energy expenses: Electricity and other production costs are important factors for spinning and weaving operations.
Textile demand and exports: Domestic demand, export orders, international competition and customer purchasing patterns can affect sales and capacity utilization.
Financing costs and debt: Borrowings and financing expenses deserve attention because the company has reported annual losses and a relatively high debt-to-assets screening ratio.
Profitability and cash flow: Investors should evaluate gross margins, operating performance, cash generation, receivables and inventory instead of relying on revenue alone.
Shariah screening: The latest published compliant result is based on December 2025 financial information. Its debt ratio and the upcoming revised threshold make updated screening verification particularly important.
PSX regulatory status: The Risk Warning Alert should be monitored through official PSX disclosures for updates on compliance, trading status and any possible suspension or delisting action.
Frequently Asked Questions
What is the PSX symbol of Faisal Spinning Mills Limited?
The company's ticker on the Pakistan Stock Exchange is FASM.
What does Faisal Spinning Mills Limited manufacture?
The company manufactures and sells yarn, greige fabric, dyed fabric and home textile products through its spinning, weaving, finishing and home textile operations.
Is Faisal Spinning Mills Limited Shariah-compliant?
FASM was included as Shariah-compliant in the PSX-KMI All Share Islamic Index recomposition announced in May 2026, based on accounts as of December 31, 2025. Investors should verify the next official screening result, particularly because the revised 33% debt-to-assets threshold is scheduled to apply from November 2026.
How did FASM perform in FY2026?
The company reported sales of approximately Rs 45.84 billion and a net loss of Rs 413.54 million, compared with a net loss of Rs 269.27 million in FY2025.
Did FASM announce a dividend for FY2026?
No dividend was recommended for FY2026.
What does the PSX Risk Warning Alert mean?
PSX warns of potential trading suspension or delisting due to continuous violations of specified exchange regulations. Investors should check the latest official PSX disclosures for the current position.
Conclusion
Faisal Spinning Mills Limited operates across spinning, weaving, fabric finishing and home textiles, providing exposure to Pakistan's textile industry. Its FY2026 results show that revenue remained substantial but profitability weakened, with the company reporting a larger annual loss than in FY2025.
Investors researching FASM should evaluate its operating margins, financing costs, cash flows, textile-market conditions, current Shariah-screening status and PSX Risk Warning Alert together. Historical screening compliance is not permanent, and no single financial indicator can establish whether a stock is suitable for an individual investor.
This company profile is for educational and informational purposes and is not a recommendation to buy or sell shares.
This profile is for educational purposes and is not a recommendation to buy or sell any security.