Stylers International Limited (PSX: STYLERS) was incorporated in Pakistan as a private limited company and was converted into a public limited company in 2021.
The company got listed on the stock exchange of Pakistan in 2024 in accordance with the scheme of amalgamation/merger of AEL Textiles Limited (AEL). As per the SWAP ratio in the scheme, the shareholders of AEL were allotted 0.6 shares of STYLERS against each share of AEL.
The principal activity of the company is the manufacturing, marketing and export of ready-made garments.
Pattern of Shareholding
As of June 30, 2025, STYLERS has a total of 488.828 million shares outstanding which are held by 328 shareholders. Sponsors, Directors, CEO, their spouse and their minor children have the majority stake of 69.68 percent in the company followed by associated companies holding 29.77 percent shares.
General public accounts for 0.41 percent shares of STYLERS while Banks, DFIs, NBFIs, Insurance companies, Takaful, Modarabas, Pension Funds and others collectively hold 0.14 percent shares.
Financial Performance in 2025
In 2025, STYLERS posted year-on-year growth of 43.55 percent in its topline which clocked in at Rs. 20,727.71 million. The growth mainly came on the back of export sales to Europe. During the year, the company also increased its capacity under the Project Sunshine.
The expansion project was financed through the right issue of 53,540,353 shares which generated a gross amount of Rs.2329 million. STYLERS’s total capacity clocked in at 8.956 million pieces in 2025 as against total capacity of 7.968 pieces recorded in the previous year.
Capacity utilization clocked in at 117.63 percent in 2025 versus capacity utilization of 88.92 percent posted in 2024.
The increase in total capacity and capacity utilization were in line with sustained demand from key export markets. During the year, the company undertook various cost cutting measures such as the installation of solar power plant which took its total solar capacity to 2000kW.
This coupled with the strategic actions taken to keep a check on raw material cost and inland freight resulted in 28.57 percent stronger gross profit in 2025. GP margin, however, ticked down from 20.57 percent in 2024 to 18.43 percent in 2025 due to higher utility expense and depreciation expense after the capitalization of assets under the Project Sunshine.
Administrative expense surged by 57.41 percent in 2025 on the back of elevated payroll expense, depreciation expense as well as repair & maintenance expense incurred during the year. The company expanded its workforce from 5680 employees in 2024 to 6152 employees in 2025. Distribution expense mounted by 65.27 percent in 2025 due to higher outward freight & handling expense, increased salaries of sales force, elevated clearing & forwarding charges, claims on export sales and commission to selling agents.
Other expense dropped by 25.31 percent in 2025 due to considerably lower net exchange loss recorded during the year. Other income dipped by 6.67 percent in 2025, however, was enough to offset its other income. Decline in other income was the consequence of no credit balances written back during the year and lower income on bank deposits.
STYLERS recorded 14.76 percent higher operating profit in 2025 with OP margin clocking in at 11 percent versus OP margin of 13.79 percent recorded in 2024. Finance cost surged by 36.50 percent in 2025 mainly on account of bank charges and commission.
STYLERS’s outstanding debt significantly reduced during the year which coupled with the increased equity resulted in gearing ratio of 7 percent in 2025 versus gearing ratio of 24 percent recorded in 2024.
While profit before tax clocked in at Rs.1930.39 million in 2025, up 11.50 percent year-on-year, the transition from final tax regime to normal tax regime resulted in 13.82 percent downtick in profit after tax which clocked in at Rs.1273.28 million in 2025. This translated into EPS of Rs.2.61 in 2025 versus EPS of Rs.3.37 recorded in 2024. NP margin ticked down from 10.23 percent in 2024 to 6.14 percent in 2025.
Recent Performance (1QFY26)
During the first quarter of the ongoing fiscal year, STYLERS recorded 5.05 percent year-on-year decline in its net sales which clocked in at Rs.4637.79 million. This was the consequence of unfavorable product mix and lower sales volume, Decline in export volumes was the result of supply chain disruptions on the back of geopolitical tensions.
Cost of sales dipped by 4.31 percent in 1QFY26, resulting in 8.62 percent thinner gross profit recorded in 1QFY26 with GP margin clocking in at 16.61 percent versus GP margin of 17.26 percent recorded in 1QFY25. The decline in GP margin was the result of greater depreciation expense and an increase in minimum wages. Administrative expense surged by 17.43 percent in 1QFY26 due to higher payroll expense.
Conversely, distribution expense dipped by 44.62 percent during the period under consideration due to reduced freight charges owing to lower sales volume. Other expense increased by 10.43 percent during 1QFY26 seemingly due to exchange loss. However, other expense was offset by other income of Rs.47.06 million recorded during the period, down 34.68 percent year-on-year.
Other income declined owing to lower profit rates on bank deposits due to monetary easing. Despite lower financing rates, finance cost hiked by 52.52 percent in 1QFY26 as diminishing Musharaka rental expense increased after the addition of factory premises which was previously rented from Stylers Plus Limited.
Tax expense also spiked after the transition to normal tax regime. Net profit deteriorated by 20.61 percent to clock in at Rs.230.35 million in 1QFY26. This translated into EPS of Rs.0.47 in 1QFY26 versus EPS of Rs.0.63 recorded in 1QFY25. NP margin shrank from 5.94 percent in 1QFY25 to 4.96 percent in 1QFY26.
Future Outlook
Project Sunshine is expected to enhance capacity and provide operational efficiency enabling the company to cater to export markets with full vigor. Tariff realignments have provided Pakistani textile exporters a competitive edge over its regional counterparts which will also serve as a positive omen for STYLERS.