DS Industries Limited (PSX: DSIL) was incorporated in Pakistan as private limited company and later changed its status into a public limited company.
The company commenced its commercial operations in 2004. The company is engaged in the manufacturing and selling of yarn.
Pattern of Shareholding
As of June 30, 2025, DSIL has a total of 83.686 million shares outstanding which are held by 1705 shareholders. Local general public has the highest stake of 57.455 percent in the company followed by Directors and Chief Executive holding 27.455 percent shares. Foreign general public accounts for 9.167 percent shares of DSIL while joint stock companies hold 2.813 percent shares.
Associated companies and related parties hold 2.517 shares of DSIL. The remaining shares are held by other categories of shareholders.
Performance Trail (2019-25)
Except for a year-on-year growth in 2021 and 2023, the topline of DSIL plunged in all the years under consideration.
The bottomline also stayed in the negative zone in all the years except 2022 and 2025. It is to be noted that even in 2022 and 2025 where the company registered a positive bottomline, it continued to record gross and operating losses. The detailed performance review of the period under consideration is given below.
In 2019, DSIL’s revenue dropped by 18.96 percent year-on-year to clock in at Rs.581.73 million.
The company produced less because of the shortage of raw material i.e. cotton in the local market. Consequently, it had to import expensive raw material from the international market. This magnified the gross loss by 98 percent year-on-year in 2019. Market induced rise in salaries as well as freight charges pushed the distribution and administrative expense up by 31.80 percent and 19.12 percent respectively in 2019.
Other expense wreaked havoc in 2019 as it multiplied by a massive 1790 percent in 2019 on the back of impairment allowance for expected credit losses, impairment allowance on property, plant and equipment as well as loss on the sale of property, plant and equipment.
Other income also grew by 565.88 percent in 2019 as DSIL received waiver on debt finances and accrued markup. Operating loss inclined by 129.26 percent in 2019. Finance cost grew by 80.23 percent year-on-year in 2019 on the back of higher discount rate. To make things worse, the share of loss from associate companies also grew by 19 percent year-on-year in 2019; while loss before tax surged by 206.93 percent in 2019, the tax benefit attributable to the origination and reversal of temporary differences bridged the gap to a large extent.
Resultantly, net loss of Rs.81.53 million recorded in 2019 was only 7.59 percent higher than what recorded in 2018. Loss per share inched up to Rs. 0.97 in 2019 from Rs.0.91 in 2018.
In 2020, the topline further fell by 79.76 percent year-on-year to clock in at Rs. 117.73 million. This was because the demand tamed on the back of outbreak of COVID-19 and the associated slowdown of economic activity.
During 2020, the company shifted its operations from the manufacturing of yarn to the manufacturing of value-added ladies garments. This resulted in a gross profit of Rs.2.32 million in 2020 after successive years of posting gross loss. GP margin clocked in at 1.97 percent in 2020.
Distribution expense climbed by over 900 percent in 2020 due to excessive advertising and sales promotion drives as the company entered a new line of business. Freight and forwarding as well as commission charges also significantly increased during the year.
Drastic fall in salaries and benefits as well as directors’ remuneration pushed administrative expense down by 52.69 percent year-on-year in 2020. Other expense dipped by 99.74 percent in 2020 due to high-base effect as the company booked massive impairments in 2019.
Other income also dropped by 71.80 percent in 2020 as the company received waivers and wrote back liabilities in the previous year.
Operating loss shrank by 85.97 percent in 2020. Finance cost nosedived by 5.54 percent in 2020 as DSIL’s short-term borrowings considerably plunged during 2020. Net loss dwindled by 58.93 percent in 2020 to clock in at Rs.33.48 million. Loss per share descended to Rs.0.40 in 2020.
2021 proved to be blissful for DSIL as its topline boasted 13.79 percent year-on-year increase to clock in at Rs.133.97 million.
Cost of sales mounted by 11.52 percent year-on-year in 2021 which drove gross profit up by 126.87 percent. GP margin climbed to 3.92 percent in 2021. Distribution expense increased by 11.66 percent in 2021 because of freight and forwarding charges.
Administrative expense fell by 40 percent year-on-year in 2021. Other expense which considerably shrank in 2020 again mounted on the back of GIDC arrears.
Other income couldn’t lend any support either as it declined by 45.48 percent in 2021 because unlike previous year, there were no reversals of impairment allowance on expected credit losses in 2021. This drove up the operating loss by 134.70 percent in 2021.
Finance cost slashed by 30.50 percent year-on-year in 2021 on account of lower discount rate. The company also recognized share of profit from associate companies in 2021 as against the share of loss recorded in 2020. This coupled with deferred tax attributable to origination and reversal of temporary differences reduced the net loss by 71 percent in 2021 to clock in at Rs.9.68 million with loss per share of Rs.0.12.
After registering growth in 2021, DSIL’s topline crashed by 88.10 percent in 2022 to clock in at Rs.133.97 million. This was because the company didn’t have enough working capital to ensure sustained production during the year.
The banks didn’t provide any line of credit because the company had earlier defaulted on its loans. This rendered the company short of funds to continue its operations.
The company sold its land and building worth Rs.303 million in 2022 to meet its liabilities and prevent potential litigation from its creditors. Gross profit recorded by DSIL over the past two years again turned into gross loss of Rs.18.52 million in 2022.
Distribution expense tumbled by 93.94 percent in 2022 while administrative expense also declined by 27.19 percent. The absence of GIDC arrears in 2022 pushed other expense down by 93 percent in 2022.
Other income grew by 49.45 percent in 2022 because of waiver of accrued interest received during the year. Operating loss shrank by 77.85 percent in 2022. Finance cost ticked down by 1 percent in 2022.
The recognition of deferred tax assets in 2022 pushed the bottomline into net profit worth Rs.28.61 million in 2022. EPS clocked in at Rs.0.34 while NP margin was recorded at 179.45 percent in 2022.
In 2023, DSIL’s net sales massively grew to the tune of 133.25 percent to clock in at Rs.37.18 million. This was due to tremendous rise in the sale of garments during the year.
Due to reduction in the cost of sales, the company was able to post a gross profit of Rs.15.06 million in 2023. GP margin clocked in at 40.51 percent in 2023. Operating expense significantly increased during the year mainly on the back of elevated commission, freight charges as well promotional expense incurred during the year. Other expense contracted by 64.77 percent in 2023 as there was no charge of fines and penalties.
Other income dropped by 27.78 percent in 2023 due to high-base effect as the company received waiver on accrued interest in the previous year. DSIL was able to post operating profit of Rs.5.46 million in 2023. OP margin was recorded at 14.69 percent in 2023. Finance cost dipped by 99.21 percent in 2023 which only comprised of bank charges. Share of loss from associate companies also dropped by 76.96 percent in 2023.
DSIL couldn’t post net profit in 2023 because of reversal of deferred tax asset of Rs.17.20 million. Net loss was recorded at Rs.14.426 million in 2023 with loss per share of Rs.0.17.
In 2024, DSIL posted 21.55 percent decline in its net sales which clocked in at Rs.29.17 million. Sale of garments which boasted phenomenal growth in the previous year, slid back in 2024. Increased cost of raw materials coupled with elevated energy tariff and Pak Rupee depreciation resulted in 47.54 percent decline in gross profit in 2024.
GP margin fell to 27 percent in 2024. While the company continued to allocate a higher budget for advertising & promotion, lesser sales volume resulted in thinner freight and commission charges, resulting in 8 percent decline in distribution expense in 2024.
Administrative expense ticked up by 9.38 percent in 2024 due to higher payroll expense, utility charges and depreciation expense incurred during the year. DSIL streamlined its employees from 13 in 2023 to 7 in 2024. Other expense surged by 73.36 percent in 2024 due to fines and penalties imposed during the year.
Other expense was completely offset by 12.63 percent uptick recorded in other income which was the result of gain on disposal of property and plant and return on bank deposits. DSIL posted operating loss of Rs.0.54 million in 2024.
Finance cost escalated by 321.20 percent in 2024 due to increased bank charges and commission. DSIL also recorded share of profit from an associated company to the tune of Rs.2.86 million in 2024. Net loss clocked in at Rs.3.456 million in 2024, down 76 percent year-on-year. This translated into loss per share of Rs.0.04 in 2024.
In 2025, DSIL’s net sales descended by 87 percent to post its lowest level of Rs.3.78 million. This was on the back of a drastic decline in the sale of garments. This was on the back of reduced demand. Higher cost of raw materials resulted in gross loss of Rs. 0.11 million in 2025.
Curtailed operations and sales resulted in 94.56 percent decline in distribution expense and 22 percent dip in administrative expense in 2025. This was because of lesser commission, freight expense, advertising expense as well as payroll expense in 2025.
Workforce was further squeezed to 4 employees in 2025. No other expense was recorded in 2025. Other income also deteriorated by 35.62 percent in 2025 due to lower return on bank deposits. Operating loss mounted by 285.24 percent in 2025 to clock in at Rs.2.08 million.
Finance cost grew by 109.65 percent in 2025 which only comprised of bank charges. As of June 30, 2025, DSIL’s borrowings comprised of short-term borrowings worth Rs.56.50 million from directors and associated companies. These borrowings were unsecured, interest free and payable on demand.
Share of profit from associated company (Pervez Ahmed Capital Private Limited) improved by 197 percent to clock in at Rs.8.51 million in 2025. This enabled DSIL to register net profit of Rs.5.246 million in 2025. This translated into EPS of Rs.0.06 in 2025. NP margin clocked in at 138.69 percent in 2025.
Recent Performance (1QFY26)
During the first quarter of the ongoing fiscal year, DSIL recorded 98.32 percent decline in its net sales which clocked in at Rs.35,597.
Due to demand destruction in its existing product line, the company is actively seeking to evaluate alternative business plans within the textile sector. Gross profit clocked in at Rs.6,625 in 1QFY26, down 96.21 percent year-on-year.
Drastic decline in sales and curtailed operations resulted in 99 percent plunge in distribution expense and 16.56 percent slump in administrative expense in 1QFY26. Other income, which largely comprised of return on bank deposits, tumbled by 45.80 percent in 1QFY26 apparently due to monetary easing.
DSIL recorded operating loss of Rs.0.307 million in 1QFY26 versus operating profit of Rs.1.019 million posted in 1QFY25. Bank charges clocked in at Rs.4,307 in 1QFY26, down 99.25 percent year-on-year. On the positive front, share of profit of associate company grew by a massive 663.64 percent to clock in at Rs.4.826 million.
The company also registered unrealized loss on short-term investment to the tune of Rs.1.15 million in 1QFY26, however, was able to post net profit of Rs.3.31 million in 1QFY26, up 111.48 percent year-on-year. EPS was recorded at Rs.0.04 in 1QFY26 up from EPS of Rs.0.02 posted in 1QFY25. NP margin clocked in at 9310.41 percent in 1QFY26 versus NP margin of 73.94 percent registered in 1QFY25.
Future Outlook
As of September 30, 2025, the company’s accumulated losses clocked in at Rs.578.949 million. Having defaulted on its liabilities in the past, DSIL is facing a dearth of net working capital as the creditors are skeptical of the company’s abilities to pay off its liabilities in the future.
The company has liquidated most of its property, plant and equipment and is largely surviving on its other income and share of profit of associate.
On the positive side, the company has a continued support from its related parties in the form of interest free loan which could be used to revive its operations. Its current assets also exceed its current liabilities by Rs.13.32 million as of September 30, 2025.
DSIL is vigorously looking for viable business ideas within textile sector to kick-start its operations.