PACRA Maintains the Entity Ratings of Ahmad Hassan Textile Mills Limited

The assigned ratings of Ahmad Hassan Textile Mills Limited (“AHTML” or “the Company”) reflect its adequate positioning within Pakistan’s textile sector. AHTML is primarily engaged in the manufacturing of a diversified range of fabric products, including Twills, HB, Panama, BFC, Satins, CVC, and Canvas. The Company is managed by a team of seasoned professionals overseeing its operational functions. Since inception, AHTML has maintained a stable business risk profile.
During FY25, the Company recorded a topline of PKR 5.6bln (FY24: PKR 5.1bln; 1QFY26: PKR 1.2bln), translating into a year-on-year (YoY) growth of ~10.8%, largely supported by improved pricing dynamics. The sales mix remains predominantly skewed towards the domestic market, with local sales—including indirect exports—accounting for approximately 91.2% of total gross revenues, while the remaining portion comprises direct exports. The Company’s export footprint spans the U.S., Europe, and Asia. Its major customers include Sarena Textile Industries (Pvt.) Ltd, Saya Weaving Mills Ltd, Meraj Fatima Fabrics (Pvt) Ltd, H. Y Enterprises, Mak Fabrics, Imran Brothers Textile (Pvt.) Ltd, A.B. Export (Pvt) Ltd, and Maypole (Pvt) Ltd. Gross margins of the Company witnessed an improvement, primarily attributable to more efficient raw material procurement practices. Additionally, a lower tax charge positively impacted bottom-line performance, with net profitability increasing to PKR 94mln in FY25 (FY24: PKR 40mln, 1QFY26: PKR 21mln). During the year, management undertook capital expenditures focused on energy efficiency initiatives, which are expected to rationalize energy costs and provide additional resilience within the cost structure. Furthermore, the Company is contemplating the execution of BMR through the installation of new looms, aimed at enhancing its sustainability profiles. However, the proposed funding structure and its resultant impact on the Company’s financial metrics remain key considerations. The financial risk profile of the Company is assessed as adequate, supported by a moderately leveraged capital structure. AHTML has effectively managed its net working capital requirements through a prudent mix of short-term borrowings and internally generated cash flows. The Company’s cash flow generation and debt service coverage indicators remain adequate.
The ratings are dependent upon the management's ability to capitalize on growth opportunities in a competitive landscape, operate at an optimal level, and improve margins and coverages, going forward. The company is expected to adhere. Adherence to the debt matrix at an optimal level is a prerequisite for assigned ratings.

About the Entity
Ahmad Hassan Textile Mills Ltd., a listed concern, commenced operations in 1989. The Company is engaged in the manufacturing of greige fabric, operating with 171 looms. The majority stakes (57%) of the Company are held by Mr. Javed’s family. The Company has a seven-member board, primarily composed of members from the sponsoring family, with two independent directors. The board is chaired by Mrs. Salma Javed, while the CEO, Mr. Muhammad Harris, oversees the Company’s affairs.