Zephyr Textiles Limited · PSX:ZTL
Zephyr Textiles — FY2026 Earnings Presentation
13 slides from Zephyr Textiles's earnings presentation, October 2026
Slide 1: Corporate Briefing Session 2026
ZEPHYR TEXTILES LIMITED Corporate Briefing Session 2026 Performance for the year ended June 30, 2026 and outlook for FY2027 Lahore | Based on the Annual Report 2026
Slide 2: FY2026 at a glance
FY2026 at a glance Lower sales, better margins and a sharply lower finance bill returned the Company to profit Rs 7.75bn 11.19% Rs 183m Rs 6.7m Net sales Gross margin Finance costs Profit after tax -6.34% vs Rs 8.28bn +1.34 pp vs 9.85% -29.97% vs Rs 261m +270.6% vs Rs 1.8m Rs 304m Rs 0.11 Rs 90.2m R
Slide 3: Operating environment
Operating environment Macro conditions stabilised, but textile growth stayed modest and costs stayed high 3.70% 6.5% 0.7% GDP growth FY2026 (FY2025: Large-scale manufacturing Textile manufacturing growth 3.18%) growth, Jul-Mar FY2026 in the same period US$13.5bn +3.8% 11.5% Textile exports, 59.6% of
Slide 4: Revenue and market mix
Revenue and market mix Exports are about three-quarters of sales; Europe leads, with new momentum in Hong Kong and South Africa Top markets, FY2026 net sales (Rs million) Pakistan (local) 2,019 73.8% Export share of sales Italy 1,399 Germany 1,115 USA 598 Rs 5.69bn Sri Lanka 560 Export sales, -6.0%
Slide 5: Profit and loss summary
Profit and loss summary Gross profit grew while operating costs and lower other income trimmed operating profit 11.19% Rs million FY2026 FY2025 Change Net sales 7,754 8,279 -6.3% Gross margin Gross profit 868 815 +6.4% +1.34 pp Distribution & admin expenses 588 525 +12.1% Operating profit 304 342 -1
Slide 6: Six-year trend
Six-year trend Revenue has retreated from its FY2024 peak; margins and EPS remain below FY2021-23 levels Net sales (Rs million) Gross margin (%) 8,103 8,394 8,279 7,754 15.1 7,384 6,129 13.2 11.2 10.7 10.0 9.9 FY21 FY22 FY23 FY24 FY25 FY26 FY21 FY22 FY23 FY24 FY25 FY26 EPS (Rs): FY21 5.08 FY22 3.07
Slide 7: What moved earnings
What moved earnings Cheaper financing and better gross profit did the heavy lifting; overheads absorbed part of the gain Rs million Gross profit: cost of sales 868 +Rs 52m fell 7.7% vs sales down 6.3% 815 Finance costs: lower 525 588 -Rs 78m borrowing cost environment 342 304 261 Distribution & admi
Slide 8: Balance sheet
Balance sheet A larger asset base, with working capital absorbing most of the growth Total assets: Rs 7.18bn Rs Rs 2.54bn Shareholders' equity 1.97bn Stock in trade Fixed assets BV/share Rs 42.81 +1.4% YoY Stock in trade Trade debts Other current assets Rs Rs Other 1.14bn Trade debts 2.09bn Short-te
Slide 9: Cash flow
Cash flow Operating cash flow turned positive after a Rs 333m outflow last year Net cash flows by activity (Rs million) Rs 400m 621 Cash from operations FY2025: Rs 57m 90 183 Rs 306m Capital expenditure -16.9% YoY -333 -307 -268 Rs 134m Operating Investing Financing Finance cost paid FY2025 FY2026 -
Slide 10: Liquidity and leverage
Liquidity and leverage Interest cover recovered, but liquidity headroom is thin and borrowing remains high Interest cover ratio (times) 4.22 1.00x 0.90x Current ratio Debt / equity 3.66 2.96 FY25: 0.97x FY25: 0.80x 1.52 1.31 1.66 47:53 1.66x Gearing ratio Interest cover FY25: 45:55 FY25: 1.31x FY21
Slide 11: Governance and ownership
Governance and ownership Sponsor-led, with an independent-chaired Audit Committee and full board attendance Shareholding at June 30, 2026 7 directors, 4 female; 2 independent board meetings, all directors 4 of 4 present Audit Committee meetings, 4 independent chair mean gender pay gap (median Direct
Slide 12: Outlook and priorities for FY2027
Outlook and priorities for FY2027 Cautious but constructive: profitable revenue and cash conversion ahead of volume growth Convert earnings to 1 Protect gross margin 2 3 Cut finance costs cash Costing, pricing, procurement Faster receivables, leaner Control short-term debt; match and planning discip
Slide 13: Questions and discussion
Questions and discussion No dividend recommended for FY2026: surplus is reinvested in working capital, debt reduction and planned capex. 30th Annual General Meeting Wednesday, October 28, 2026, 10:30 AM Registered Office, 3rd Floor IEP Building, Gulberg III, Lahore Book closure: October 21 to 28, 20