Image Pakistan Limited

Important PSX Risk Warning Alert

The Pakistan Stock Exchange company page currently displays the following warning:

The Company is in continuous violation as specified in Clauses 5.11.1. or 5.11.2. and carry risk of suspension of trading or being delisted from the Exchange and may be subject to such terms and conditions as specified by the Exchange.

This is a material listing and trading risk. Investors should review the latest PSX announcements to determine the status and nature of the underlying violations. Shariah-compliant classification does not remove the possibility of suspension, delisting, liquidity problems, or financial loss.

Source: Official PSX company profile — Image Pakistan Limited.

Company Overview

Image Pakistan Limited (PSX: IMAGE) is a Pakistani textile and apparel company incorporated on November 14, 1990. Its principal activity is the manufacturing and sale of embroidered fabric and ready-to-wear garments under the Image brand, which operates in the high-street fashion segment.

The company’s registered office and manufacturing plant are located at F/538, S.I.T.E., Karachi. Its head office is at A/33, Central Commercial Area, Block 7/8, Shahrah-e-Faisal, KCHSU, Karachi. Its financial year ends on June 30.

Source: Image Pakistan official corporate information.

Products and Business Model

Image Pakistan combines textile manufacturing with branded fashion retail. Its business includes embroidered fabrics and ready-to-wear clothing, allowing it to participate in both textile production and consumer-facing apparel markets.

Performance may depend on consumer purchasing power, fashion trends, product design, inventory management, raw-material prices, energy costs, distribution expenses, and competition from local and international brands. Changes in customer demand or unsold inventory can affect margins and working-capital requirements.

Investors should examine how the company balances manufacturing costs, product pricing, retail demand, and inventory turnover. Sales growth alone does not necessarily indicate stronger cash generation or sustainable profitability.

Financial Performance

According to the financial figures reported on the PSX company page, Image Pakistan recorded the following annual results:

Financial metric	FY2026	FY2025
Sales	Rs3.727 billion	Rs3.648 billion
Profit after taxation	Rs547.416 million	Rs511.493 million
Earnings per share (EPS)	Rs2.38	Rs2.22
Gross profit margin	48.58%	46.34%
Net profit margin	14.69%	14.02%

The reported figures show higher sales, profit after taxation, and margins in FY2026 than in FY2025. Investors should validate these figures against the audited annual report and review the corresponding cash-flow statement, finance costs, receivables, inventory, and any material accounting changes.

Source: PSX financials and company announcements.

Shariah Compliance Status

Image Pakistan Limited was classified as Compliant in the PSX-KMI All Share Index recomposition published on May 29, 2026, based on accounts as of December 31, 2025.

The published screening ratios were:

• Debt ratio: 15.14%
• Non-compliant investment ratio: 0.00%
• Non-compliant income ratio: 0.00%
• Illiquid assets ratio: 70.61%

These figures relate to that specific screening review. Investors should check the latest official PSX-KMI screening publication before relying on the classification, as Shariah status can change following subsequent financial disclosures and reviews.

Source: Official PSX-KMI All Share Index recomposition notice.

Dividends and Shareholder Returns

Investors should review the company’s official dividend announcements and annual reports for details of cash dividends, bonus shares, entitlement dates, and payment status. A dividend recommendation by the board should not be treated as approved or paid until the relevant company and PSX disclosures confirm the outcome.

Historical dividends do not guarantee future distributions. The company’s ability to pay dividends depends on earnings, cash availability, financing needs, and applicable approvals.

Source: PSX announcements and payouts.

Key Risks to Consider

PSX listing and trading risk: The company page currently displays a Risk Warning Alert concerning potential suspension of trading or delisting. This issue deserves particular attention before evaluating the stock.

Consumer demand: Fashion and apparel sales can be sensitive to household purchasing power, changing trends, and economic conditions.

Inventory risk: Unsold products, changing designs, or slower sales can tie up working capital and pressure profitability.

Cost pressures: Fabric, embroidery, labour, energy, packaging, and distribution costs can influence operating margins.

Competition: Local apparel businesses and imported products may put pressure on pricing and market share.

Shariah screening changes: The cited compliant status relates to a defined review date and should be checked against the latest official notice.

How Investors Can Research IMAGE

Before evaluating the shares, review the latest audited annual report, quarterly financial statements, PSX announcements, dividend disclosures, cash-flow statement, and any updates regarding the Risk Warning Alert. Compare several years of revenue, margins, earnings, inventory, and operating cash flow to assess the quality and sustainability of financial performance.

Investors should consider the company’s regulatory position, business fundamentals, valuation, liquidity, and personal risk tolerance together rather than relying on earnings growth or Shariah classification alone.

Official Resources

• PSX company profile, financials, and announcements
• Image Pakistan official website
• Corporate information
• Official PSX-KMI screening notice
• PSX Shariah-compliant investment resources

This profile supports company research and investor education. Historical financial performance and Shariah screening status do not guarantee future results or continued compliance. The current PSX Risk Warning Alert is a separate material consideration.