Mehmood Textile Mills Limited

Company Overview

Mehmood Textile Mills Limited (PSX: MEHT) is a Pakistani textile company incorporated on February 25, 1970. Its shares are listed on the Pakistan Stock Exchange (PSX). The company's principal business includes manufacturing and selling yarn and grey cloth, alongside investments in associated businesses involved in textile-related activities and electricity generation.

The company's registered office is located at Mehr Manzil, outside Lohari Gate, Multan, Punjab, Pakistan. Its manufacturing operations are associated with the wider industrial region of southern Punjab.

Official website: https://mahmoodtextile.com/

Business Activities

Mehmood Textile Mills operates in the textile composite sector. Its business activities include:

• Yarn manufacturing: Production and sale of yarn used by textile manufacturers.
• Grey cloth: Manufacturing and selling unfinished fabric for further processing.
• Associated investments: Investments in businesses involved in yarn, cotton lint, cotton seed and electricity generation.
• Group operations: The group structure includes wholly owned subsidiary MG Apparel Limited and an associated company, Masood Spinning Mills Limited.

The group's consolidated performance can differ materially from the standalone results of the listed parent company. Investors should therefore identify which set of financial statements they are reviewing.

Financial Performance — FY2026

For the financial year ended June 30, 2026, the company reported the following standalone results. Figures are rounded and expressed in Pakistani rupees.

Financial metric	FY2026	FY2025
Sales	Rs 56.33 billion	Rs 51.61 billion
Gross profit	Rs 6.53 billion	Rs 6.73 billion
Operating profit	Rs 4.86 billion	Rs 4.62 billion
Profit after tax	Rs 758.26 million	Rs 789.47 million
Earnings per share (EPS)	Rs 25.28	Rs 26.32

Standalone sales increased by approximately 9.1% year-on-year. However, gross profit declined by around 2.9%, while profit after tax and EPS fell by approximately 4.0%. This shows that revenue growth did not translate into higher standalone annual earnings.

The company reported finance costs of approximately Rs 3.59 billion in FY2026. Borrowing expenses remain an important factor to monitor when evaluating profitability and financial risk.

Consolidated results: For FY2026, the group reported sales of approximately Rs 69.73 billion, gross profit of Rs 8.86 billion, operating profit of Rs 5.81 billion, profit after tax of approximately Rs 1.06 billion and consolidated EPS of Rs 35.20. These figures include the consolidated group and should not be confused with the standalone figures above.

Sources: PSX company profile and FY2026 financial statements. Investors should consult the original filings for complete accounting notes and disclosures.

Dividend History and Shareholder Returns

For FY2026, the company's announced financial results indicated no cash dividend, bonus shares or right shares alongside the results. Investors seeking dividend income should check the latest PSX payout records and subsequent corporate announcements rather than assuming that previous payouts will continue.

Dividend decisions can change from year to year depending on earnings, cash flow, capital expenditure, debt obligations and the board's recommendations.

Latest Corporate Updates

The PSX announcement record shows that the company transmitted its annual report for the year ended June 30, 2026, on October 8, 2026.

A board meeting was scheduled for October 29, 2026, to consider the standalone and consolidated financial statements for the quarter ended September 30, 2026. As of October 27, 2026, those quarterly results were still pending the scheduled meeting; investors should verify the official PSX announcement for the actual outcome.

The PSX profile also displays a regulatory warning relating to continuous violations under specified PSX clauses, with a stated risk of suspension of trading or delisting. Investors should review the exchange's latest notice and any subsequent compliance updates to understand the current status.

Factors That May Affect MEHT

1. Cotton and raw-material prices: Changes in cotton availability and prices can affect production costs and textile margins.

2. Energy expenses: Electricity and other energy costs influence the cost competitiveness of textile manufacturing in Pakistan.

3. Export demand and international competition: Global demand, order volumes, exchange-rate movements and competition can affect sales and margins.

4. Interest rates and finance costs: Borrowing expenses can reduce earnings even when sales or operating profit improve.

5. Profit margins: FY2026 standalone gross profit declined despite higher sales, making margin trends an important monitoring point.

6. Regulatory compliance: The warning displayed on the PSX profile is a material consideration. Investors should check for official updates regarding compliance, trading status and any applicable exchange action.

7. Group structure: Changes in subsidiary operations and consolidated reporting can affect the difference between parent-company and group earnings.

Investment Considerations

Before evaluating Mehmood Textile Mills Limited, investors may wish to examine:

• The latest audited annual report and interim financial statements.
• Standalone and consolidated earnings, margins and EPS.
• Finance costs, borrowings and cash-flow trends.
• Dividend announcements and payout history.
• The company's latest PSX compliance and regulatory disclosures.
• Valuation measures in comparison with other listed textile companies.

A low price-to-earnings ratio or a decline in share price should not, on its own, be treated as proof that a share is undervalued. Earnings quality, debt, cash flow, regulatory status and future business prospects also matter.

Frequently Asked Questions

What is the PSX symbol of Mehmood Textile Mills Limited?

Its Pakistan Stock Exchange symbol is MEHT.

What does Mehmood Textile Mills Limited do?

The company principally manufactures and sells yarn and grey cloth and also manages investments in associated businesses.

When was Mehmood Textile Mills Limited incorporated?

It was incorporated on February 25, 1970.

What was its EPS for FY2026?

Its reported standalone earnings per share for FY2026 were Rs 25.28. Consolidated EPS was Rs 35.20.

Did the company announce a dividend for FY2026?

No cash dividend, bonus shares or right shares were announced alongside the FY2026 results.

Where can investors check official MEHT announcements?

Investors can use the company's PSX profile at https://dps.psx.com.pk/company/MEHT and its official website at https://mahmoodtextile.com/.

Official Resources

• PSX company profile: https://dps.psx.com.pk/company/MEHT
• Company website: https://mahmoodtextile.com/
• PSX announcements and financial filings: Available through the official PSX company profile.

Disclaimer

This company profile is provided for educational and informational purposes only. It is not investment advice, a recommendation to buy or sell shares, or a guarantee of future performance. Financial figures are presented for the specified reporting periods and may be subject to the details and disclosures in official filings. Investors should independently verify the latest financial statements, dividend announcements and regulatory status before making investment decisions.