Khyber Textile Mills Limited (PSX: KHYT) was incorporated as a Public Limited Company in Pakistan in 1961.
The company was initially engaged in the manufacture and sale of cotton and polyester yarn and cloth, however, since 2017, the company has suspended the textile production line and is engaged in the agricultural livestock business.
Moreover, it has been renting its excess buildings for warehousing and rental purposes since 2016 as an alternate line of business.
Pattern of Shareholding
As of June 30, 2025, KHYT has 1.228 million shares outstanding which are held by 662 shareholders. General public has the majority stake of 70.80 percent in the company followed by directors, their spouse and minor children holding 27.54 percent shares.
The remaining shares are held by insurance companies, joint stock companies, financial institutions, investment companies etc.
Historical Performance (2019-2025)
Except for a year-on-year dip in 2024, KHYT’s topline (sale of livestock) enlarged over the period under consideration. Conversely, the company posted net profit only in 2021. It is striking to note that even in 2021, the company made operating losses just like any other year; however, “other income” came to rescue the bottomline from making net losses.
Another key observation is that the KHYT posted gross profit in all the years under consideration; however, hefty administrative expenses didn’t allow the gross profit to trickle down. Administrative expenses stood as high as 371 percent of the company’s topline in 2019.
However, over the years, the company has been able to squeeze its administrative expenses proportionally which stood at 92.32 percent of KHYT’s topline in 2024 and then 104.53 percent of the topline in 2025.
Let’s delve into the two accounts – other income and administrative expenses - which have been the game changers for KHYT’s bottomline. “Other income” account mainly comprised of trade creditors written back. In administrative expenses account, the main culprit was depreciation expense which inflated this account to an abysmally high value.
Another factor which tends to buttress the company’s bottomline was the rental income on its vacant buildings and warehouses. The company also started making paltry agricultural income since 2020.
In 2019, the company’s textile business remained halted; however, the company recorded 100.91 percent year-on-year growth in its revenue. This was on the back of sale of agricultural livestock. KHYT’s topline stood at Rs.3.516 million in 2019. Cost of sales mounted by 49.66 percent in 2019 which mainly comprised of animals purchased as well as animal food and medicines consumed during the year.
KHYT recorded 724 percent year-on-year rise in its gross profit which stood at Rs.1.096 million in 2019. This translated into GP margin of 31.17 percent in 2019 versus GP margin of 7.6 percent recorded in the previous year. Administrative expense remained largely intact during the year; however it stood at 370 percent of KHYT’s topline in 2019 versus 749.20 percent of topline in 2018.
The company’s rental income grew by 8.86 percent in 2019 to clock in at Rs.6.854 million. Operating loss dropped by 22.74 percent in 2019 to clock in at Rs.5.417 million. KHYT wrote back liabilities worth Rs.15.952 million in 2018 which it didn’t do in 2019. This resulted in net loss of Rs.3.547 million in 2019 versus net profit of Rs.10.705 million recorded in the previous year.
Loss per share stood at Rs.2.89 in 2019 versus EPS of Rs.8.72 recorded in the previous year.
Unlike other industries which remained under severe pressure during 2020 owing to global pandemic, KHYT’s topline boasted the highest year-on-year growth of 129.27 percent in 2020 to clock in at Rs.8.061 million.
The main source of revenue being the sale of livestock appears to be unaffected from the lockdowns imposed from March 2020. Cost of sales surged by 174.55 percent in 2020 mainly on account of higher cost of animals purchased during the year.
Gross profit improved by 29.29 percent in 2020, however, GP margin dipped to 17.58 percent. Administrative expense mounted by 36 percent in 2020 mainly on account of higher depreciation expense incurred during the year. With the government restrictions on all non-essential business activities, the rental income of the company took a hit in 2020.
KHYT recorded operating loss of Rs.9.92 million in 2020, up 83.15 percent year-on-year. Unlike last year, the company wrote back liabilities worth Rs.6.128 million in 2020. Consequently, the company posted net loss worth Rs.1.957 million in 2020, down 44.82 percent year-on-year. This translated into loss per share of Rs.1.57 in 2020.
In 2021, KHYT’s topline grew by 19.31 percent year-on-year to clock in at Rs.9.618 million. Gross profit in absolute terms grew by 17.97 percent in 2019, however, GP margin nosedived to 17.38 percent in 2021.
Administrative expense dropped by 6.18 percent in 2021. This was the only year during the period under consideration where the company posted net profit. While rental income continued to slide in 2021 to the tune of 19.86 percent year-on-year, trade creditors written back during the year amounting to Rs.18.122 served as a knight in shining armor.
Consequently, KHYT posted net profit of Rs.5.412 million in 2021 with EPS of Rs.4.41 and NP margin of 56.27 percent.
In 2022, KHYT’s net sales strengthened by 51.72 percent to clock in at Rs.14.59 million. Gross profit heightened by 125.89 percent in 2022, resulting in an improved GP margin of 25.88 percent. Lower depreciation expense drove down administrative expense by 7.91 percent in 2022.
Rental income which had been plunging for the past two years, ticked up by 1.62 percent in 2022. Operating loss plummeted by 36.20 percent in 2022 to clock in at Rs.6.303 million.
The company didn’t write back any liabilities in 2022. This resulted in net loss of Rs.5.297 million in 2022 with loss per share of Rs.4.32.
KHYT recorded 85.75 percent enhancement in its topline in 2023 which clocked in at Rs.27.104 million. Cost of sales mounted by 79.61 percent in 2023, resulting in 103.34 percent rise in gross profit. GP margin slightly ticked down to clock in at 28.33 percent in 2023.
Administrative expense inched up by 3.42 percent in 2023 mainly on account of higher payroll expense incurred during the year owing to inflationary pressure. Number of employees stood intact at 9 in 2023. Moreover, no salaries were paid to the company’s directors, CEO and other executives.
Rental income grew by 2.14 percent in 2023. KHYT recorded 28.17 percent decline in its operating loss which stood at Rs.4.528 million in 2023. No liabilities were written back during the year, resulting in net loss of Rs.3.915 million in 2023, down 26.11 percent year-on-year. Loss per share stood at Rs.3.19 in 2023.
In 2024, KHYT’s topline dipped by 32.28 percent to clock in at Rs.18.355 million. Cost of sales also dipped by 31.48 percent in 2024. This resulted in 34.30 percent lower gross profit in absolute terms. GP margin also eroded to 27.48 percent in 2024. Administrative expense inched up by 6.85 percent in 2024 due to higher payroll expense in line with inflationary pressure.
Rental income improved by 27.67 percent in 2024. Operating loss multiplied by 27.10 percent in 2024 to clock in at Rs.5.755 million. No liabilities were written back during the year. This resulted in net loss of Rs.4.663 million in 2024, up 19.12 percent year-on-year. Loss per share was recorded at Rs. 3.80 in 2024.
In 2025, the company repurposed its vacant land for agricultural activities – purchasing, rearing and selling of cattle and cultivation of fodder for animal feed. However, the company continued to rent out some of its vacant building and warehouses as additional sources of revenue.
Net sales ticked up by 12.69 percent to clock in at Rs.20.684 million in 2025. This mainly comprised of agricultural livestock business with textile business being closed on account of restrictions on credit facilities by banks. Cost of sales surged by 10.51 percent in 2025 which mainly comprised of cost of animals purchased as well as animal feed and medicines consumed during the year.
Gross profit improved by 18.44 percent in 2025 with GP margin ticking up to 28.89 percent. Higher GP margin was the result of growing fodder on the company’s land to reduce cost. Administrative expense surged by 27.60 percent in 2025 due to hike in depreciation expense as well as payroll expense. Number of employees stood intact at 9 in 2025.
Rental income grew by 28.44 percent in 2025. Agricultural income also ticked up by 2.95 percent during the year. KHYT recorded operating loss of Rs.7.104 million in 2025, up 23.45 percent year-on-year. For the fourth consecutive year, the company didn’t write back any of its liabilities. Net loss clocked in at Rs.5.825 million in 2025, up 24.92 percent year-on-year. Loss per share stood at Rs.4.75 in 2025.
Recent Performance (1QFY26)
During the first quarter of the ongoing fiscal year, KHYT didn’t record any sales whatsoever – no agricultural income, livestock income or textile income. Consequently there was no cost of sales.
The unavailability of credit facilities didn’t allow the company to continue its livestock business in 1QFY26. Administrative expense ticked up by 8.15 percent in 1QFY26. This mainly comprised of depreciation expense and payroll expense. Rental income went down by 9.93 percent in 1QFY26. This resulted in operating loss of Rs.4.677 million in 1QFY26, up 18.21 percent year-on-year. With no tax expense for the period, net loss also stood at Rs.4.677 million. This translated into loss per share of Rs.3.81 in 1QFY26 versus loss per share of Rs.3.22 in 1QFY25.
Future Prospects
KHYT doesn’t appear to be resuming its textile business in the near future under the litigation of default pending in the High Court to recover outstanding liabilities. Its accumulated loss stood at Rs.11.237 million as at September 30, 2025 versus accumulated loss of Rs.6.56 million recorded at the end of 2025.
The unavailability of credit lines is impeding the company to carry on BMR process and acquire working capital required to resume its textile production. However, the company will continue its livestock business and rental business besides cultivating fodder for animal consumption.
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