Punjab Oil Mills Limited (‘Punjab Oil Mills’ or ‘the Company’) is a public limited company and was incorporated in February, 1983

The Company began operations in 1984, initially focusing on the production of Banaspati and cooking oil at its facility in Islamabad. Over time, the Company has expanded its product portfolio through extensive research and development, enhancing its offerings. This diversification includes the introduction of specialty fats, laundry soaps, mushrooms, industrial gases, and coffee, reflecting its commitment to innovation and growth.

The Company is best known for its flagship brands Canolive and Zaiqa. Additional brands include Naturelle, Ella, King, and Olive oil. The company’s production facility is located in Islamabad and Head Office in Lahore. The Company has the production capacity to process 18,000 M.T of Banaspati Ghee/Specialty fats and 24,000 M.T of Cooking Oil.  The Company has the production capacity to process 18,000 M.T of Banaspati Ghee/Specialty fats and 24,000 M.T of Cooking Oil. During FY25, the actual production stood at 9,611 MT of Banaspati Ghee/ Specialty fats and 10,993 MT of cooking oil.

Substantial shareholding is attributable to the Sponsoring family who collectively owns ~28%, Associated Company (7.7%), Modarbas (8%), NIT (10%), general public 44% and others (1.4%).

While the company benefits from a stable ownership structure, it's noteworthy that the sponsoring families, despite their significant collective shareholding, have not formalized their arrangements through a shareholding agreement.

The Company's sponsors bring a diverse and robust set of expertise to the table, with established backgrounds in key sectors. Their collective experience spans textiles, finance, and economics, providing valuable business acumen. Furthermore, their specific involvement in the edible oil industry offers direct and relevant knowledge of the Company's core operations.

The Company benefits from a strong financial foundation, primarily due to the backing of its affiliated group. This group has established and substantial business interests in the textile industry, providing a source of financial stability and potentially access to resources, expertise, and networks that contribute to the Company's overall financial health.

The Company's Board of Directors comprises eight members, ensuring a balanced and diverse leadership structure. This includes the Chairman, who leads the board, the Chief Executive Officer (CEO), responsible for the company's day-to-day operations, and an Executive Director. To provide external perspectives and oversight, the board also includes three Non-Executive Directors and two Independent Directors, further strengthening corporate governance practices

The Company's Board of Directors, responsible for overseeing the strategic direction and governance of the organization, is comprised of seven members. This includes the Chairman, Mr. Tahir Jahangir, who brings extensive experience of over 40 years, including leadership roles such as President of the Towels Manufacturing Association and senior membership in the Lahore Chamber of Commerce and Industry. The Board also includes four Non-Executive Directors, one of whom is a nominee of NIT, ensuring representation of stakeholder interests. The remaining two members are Executive Directors, actively involved in the day-to-day management of the Company.

To facilitate effective governance and oversight, the Board has established three sub-committees: Audit Committee: This committee provides independent oversight of the Company's financial reporting process, internal controls, and risk management practices. Human Resource and Remuneration Committee: This committee is responsible for developing and overseeing the Company's human resources policies, including compensation and benefits, talent management, and succession planning. Management Committee: This committee assists the Board in overseeing the Company's operational performance and strategic initiatives.

The Company's financial statements for FY25 have been independently audited by Crowe Hussain Chaudhry & Co., a QCR-rated audit firm recognized by the State Bank of Pakistan (SBP) as an 'A' category firm. The auditors have issued an unqualified report, indicating that the financial statements are presented fairly, in all material respects, in accordance with applicable accounting standards.

The Company’s organizational structure is based on five main departments, namely, operations & technical, planning & development, internal audit, sale and marketing and finance. Functions relating to supply chain, production, information technology and administration come under the purview of Director Operations. Similarly, functions of sales and marketing, human resources and technical services are consolidated under the Director for Planning and Development. Both directors are supported by relevant department heads along with teams of individuals. Ultimate reporting lies with the Managing Director, with the exception of the internal audit department which functionally reports to the Audit Committee and administratively reports to the Managing Director

The Company’s management comprises experienced individuals who possess significant market knowledge and technical know-how. Management comprises of experienced individuals. Mr. Ehtisham, the CEO, has recently taken over. He was working as a COO of Bisconni. He is a result-oriented Commercial Specialist with over 19 years of diverse experience in managing brands, businesses, and boards. Mr. Ehtisham demonstrates a proven track record of success in market development, new product launches, and portfolio management. Mr. Ehtishan is adept at both consumer and trade-driven brand management, with hands-on expertise in business strategy, route to market, revenue growth management, research, and consumer engagement

Management Committees do exist which include Audit Committee, Human Resource & Remuneration Committee, and Management Committee but lack formal presence. However, meetings among senior management are conducted daily to ensure operational efficiency.

The Company leverages Microsoft Dynamics as its Enterprise Resource Planning (ERP) system, a comprehensive software solution designed to integrate and streamline core business processes. This system is comprised of eleven fully integrated modules, meaning that data and information flow seamlessly between different departments and functions within the company. This interconnectedness facilitates improved efficiency, enhanced data visibility, and better decision-making across the organization. Essentially, the ERP system acts as a central nervous system, connecting and optimizing various aspects of the business.

To maintain and enhance operational efficiency, the Company has established a dedicated Internal Audit function. This function plays a crucial role in independently assessing and monitoring the effectiveness of the Company's internal controls and operational processes. Regular reviews are conducted by the Internal Audit department to identify areas for improvement, ensure compliance with policies and procedures, and provide recommendations to management for strengthening operational controls. This proactive approach helps mitigate risks, optimize resource utilization, and improve overall operational performance.

Pakistan’s edible oil sector remains a critically import-dependent pillar of the national economy, with imports meeting approximately 87–90% of the total 4.5 million MT annual requirement. In 2025, palm oil continues to dominate the import mix, projected to reach 3.7 million MT, while soybean imports are rebounding toward 2 million MT following the resumption of GE seed shipments. Domestic production remains stagnant at roughly 0.5–0.6 million MT, primarily sourced from cottonseed (a fiber byproduct), rapeseed, and mustard, with sunflower contributing a smaller, volatile share. Strategically, the industry is navigating a "margin-squeeze" environment; while international palm oil prices saw a ~25% decline in early 2025, domestic prices remained elevated at an average of PKR 541/kg due to currency fluctuations and supply chain inefficiencies. Operationally, the sector is split: the formal branded segment (20–30% share) is focusing on premiumization and health-conscious product lines, while the massive informal "loose oil" segment continues to face scrutiny from the Competition Commission of Pakistan (CCP) and health authorities due to quality concerns and potential cartelization. Despite these structural challenges, the industry outlook remains stable, supported by inelastic demand and a young demographic that ensures a 1.6% projected growth in consumption for the current fiscal year. Efforts to localize production, particularly through coastal palm plantations and olive farming in Punjab and KPK, represent the long-term strategic pivot necessary to alleviate the persistent pressure on foreign exchange reserves.

Punjab Oil Mills Limited has a nominal share. Punjab Oil Mills Limited experienced a decline in market share, coinciding with the losses incurred during FY24. The Company, lacking its own crushing facilities, procures oil for refining. Price fluctuations in the oil market compelled the Company to reduce its sales volume, as it faced limitations in passing increased costs on to consumers.

The Company generates revenue from seven different products, namely, cooking oil, specialty fats, vanaspati ghee, soap, coffee, and mushrooms. The Company’s top three products, Canolive, Zaiqa Ghee and Zaiqa Oil, represent ~96.8% of total gross revenue. The Company sells its products in the domestic market. During FY25, the Company posted a topline of PKR 9.2bln during FY25 (FY24: PKR 8.1bln), reflecting a growth of ~13.6%.  The revenue streams of the Company consist on Banaspati Ghee (39.2%), Cooking oil (57.1%), while the soaps and fat segment contributes ~3.5% share in the gross sales. During 1QFY26, the Company’s sales revenue clocked at PKR 2,605mln. (1QFY25: PKR 1,887 mln).

The Company's margins experienced sizable dip during FY25 as the gross profit margin declined to ~9.6% (FY24: ~11.7%), driven by a hike in the overall raw material costs. Consequently, operating profit margins of the Company showed a dip and stood at 1.7% during FY25 (FY24: 3.4%) in line with the inflationary pressures. The Company’s operating profit clocked at PKR 153mln (FY24: PKR 271mln), depicting a weakening in its core business operations. The Company reported a net loss for the 2nd consecutive year in FY25, clocking 69mln, as net margin stood at -0.5% compared to a net margin of -0.5% in FY24. This downturn in net profitability is primarily attributed to two key factors: increased finance costs, likely due to higher interest rates or increased debt levels, and shifting customer preferences in response to inflationary pressures. During 1QFY26, the Company’s gross and net margins stood at 10.6% and 0.9% respectively. 

The Company has completed feasibility report on setting up an oil extraction unit in Kasur.

the Company's inventory days improved, decreasing from 27 days in FY25 to 13 days in FY24. A concerning trend is the deterioration of trade receivable days, which increased from 45 days in FY24 to 54 days in FY25. This indicates a slowdown in customer payments, tying up cash and increasing the risk of bad debts. This deterioration is a significant negative and requires management attention.   The Company's gross working capital days witnessed a marginal decrease from 72 days in FY24 to 67 days in FY25. The Company's trade payable days stood at 24 days in FY25 (FY24: 14days, 1QFY26: 35days). The net working capital cycle witnessed a compression and stood at 43days (FY24: 58days, 1QFY26: 37days), while the short-term trade leverage stood at 13.2% (FY24: 24.0%, 13.6%), depicting sufficient room for borrowings.

FCFO of the Company witnessed a significant decline and stood at PKR 19mln during FY25 (FY24: PKR 206mln, 1QFY26: PKR 63mln). Finance cost of the Company stood at PKR 131mln during FY25 (FY24: PKR 169mln, 1QFY26: PKR 26mln). Consequently, the interest coverage ratio witnessed a dip and stood at 0.7x (FY24: 1.3x, 1QFY26: 2.4x) as well as the debt coverage ratio (FY25: 0.6x, FY24: 1.2x, 1QFY26: 2.2x).

During FY25, the Company's total debt clocked at PKR 796 million, declining from PKR 833 million in FY25. Notably, 92.1% of this debt is classified as short-term, indicating a reliance on short-term financing instruments. The Company's leveraging witnessed a marginal decline and stood at 23.6% (FY24: 24.1%, 1QFY26: 23.6%), reflecting that the Company is operating under moderate leveraged capital structure. While a 23.6% leverage ratio might not be inherently alarming, the composition of the debt (predominantly short-term) raises concerns as the reliance on short-term debt exposes the company to interest rate volatility and refinancing risk.