Azgard Nine Limited (ANL), one of Pakistan’s leading denim and apparel manufacturers, reported a strong improvement in profitability for the nine months ended March 31, 2026, despite facing a challenging operating environment marked by rising costs, supply chain disruptions, and intense global competition.
According to the company’s latest interim financial report, net sales stood at Rs. 30.87 billion, slightly lower than Rs. 31.01 billion recorded during the corresponding period last year. However, the company successfully enhanced its bottom line through effective cost management and a significant reduction in finance costs.
Azgard Nine posted a profit before tax of Rs. 980.46 million, reflecting a 10.3% increase from Rs. 888.73 million reported in the same period last year. After-tax profit rose to Rs. 499.47 million, compared to Rs. 414.04 million previously, translating into earnings per share (EPS) of Rs. 1.02 versus Rs. 0.84 a year earlier.
The company’s finance costs declined substantially to Rs. 590.66 million from Rs. 871.77 million in the corresponding period, helping offset the impact of lower sales and increased operating expenses. Meanwhile, profit from operations stood at Rs. 1.95 billion, compared with Rs. 2.02 billion in the same period of FY2025.
Management noted that Pakistan’s textile exports remained largely stagnant during the review period, with growth of just 0.15%. The sector also faced significant headwinds, including elevated freight charges, higher cotton and petrochemical prices, rising energy tariffs, increased minimum wages, and ongoing supply chain disruptions linked to regional geopolitical tensions.
The company further highlighted concerns regarding the industry’s growing tax burden following the transition to the Normal Tax Regime (NTR) and the accumulation of pending sales tax refunds, which continue to place pressure on liquidity and working capital management.
Looking ahead, Azgard Nine plans to strengthen its competitive position through enhanced production planning, greater process automation, optimized capacity utilization, and continued supply chain efficiencies. The company remains focused on cost reduction initiatives and operational excellence to navigate ongoing market challenges and support sustainable growth.
Despite a difficult business environment, the company’s improved profitability demonstrates the effectiveness of its strategic focus on operational efficiency and financial discipline, positioning it for stronger performance in the coming quarters.
