Fazal Cloth Mills Limited
By PSX Investors Zone · Updated October 23, 2026
Fazal Cloth Mills Limited (PSX: FZCM) is a Pakistani textile manufacturer specialising in yarn and fabric. For FY2026, the company reported net sales of approximately Rs. 96.024 billion, profit after taxation of Rs. 1.573 billion and EPS of Rs. 52.44, compared with FY2025 EPS of Rs. 12.76. The board recommended a final cash dividend of Rs. 15 per share, subject to the applicable approval and payout process. On 23 October 2026, PSX displayed a share price of Rs. 257.00 and a trailing P/E ratio of 4.90. FZCM was marked Shariah-compliant in the PSX-KMI All Share Islamic Index recomposition effective 5 June 2026. However, PSX displays a Risk Warning Alert concerning continuing regulatory violations and possible suspension or delisting. Investors should assess these regulatory risks, textile-sector cost pressures and the company's latest disclosures before making investment decisions.
Fazal Cloth Mills Limited (PSX: FZCM) is a Pakistani textile manufacturer engaged in the production and sale of yarn and fabric. Incorporated in 1966, the company operates in the Textile Composite sector of the Pakistan Stock Exchange.
Company Overview
Fazal Cloth Mills Limited manufactures textile products for domestic and export markets. Its operations are influenced by cotton and other raw-material prices, electricity and gas costs, export demand, currency movements, financing costs and competition.
The company has manufacturing facilities across locations in Punjab, including Multan and Muzaffargarh. Investors should consult its annual report for details of installed capacity, production facilities, export exposure and operating segments.
Official sources:
FY2026 Financial Results
The following figures relate to the financial year ended 30 June 2026. Figures are shown in Pakistani rupees and rounded to millions for readability.
| Financial metric | FY2026 | FY2025 |
|---|---|---|
| Net sales | Rs. 96,023.70m | Rs. 90,002.39m |
| Gross profit | Rs. 8,946.15m | Rs. 7,696.75m |
| Operating profit | Rs. 8,151.07m | Rs. 6,895.42m |
| Profit before tax | Rs. 1,834.96m | Rs. 525.23m |
| Profit after tax | Rs. 1,573.10m | Rs. 382.76m |
| Earnings per share | Rs. 52.44 | Rs. 12.76 |
Source: PSX company financials and FY2026 results.
Financial performance analysis
Net sales increased by approximately 6.7% year-on-year. Gross profit increased by approximately 16.2%, while operating profit rose by approximately 18.2%. Profit after tax increased from approximately Rs. 382.76 million in FY2025 to Rs. 1.573 billion in FY2026.
This indicates an improvement in reported profitability during FY2026. However, textile manufacturers remain exposed to raw-material price changes, energy costs, export demand, exchange-rate movements and financing expenses. Investors should assess whether margin improvements are sustainable rather than assuming that one year's earnings growth will continue.
These figures are the annual figures displayed by PSX. Check the issuer's complete published financial statements for the detailed accounting presentation and any subsequent amendments.
Earnings Per Share (EPS)
FZCM reported EPS of Rs. 52.44 for FY2026, compared with Rs. 12.76 for FY2025.
EPS measures the profit attributable to each ordinary share. It should be considered alongside cash flow, debt, working-capital requirements and the number of shares outstanding. Strong EPS growth alone does not guarantee future dividend growth or share-price appreciation.
Official source: PSX — FZCM financials.
Dividend History and FY2026 Distribution
The board recommended a final cash dividend of Rs. 15 per share, equivalent to 150% of the stated face value, for FY2026. The company’s published information lists this as the final 2026 payout.
The distinction between recommendation, shareholder approval and actual payment matters. The PSX market snapshot on 23 October 2026 showed FZCM trading ex-dividend, while the annual general meeting was scheduled for 28 October 2026. Check the latest official notices for the final approval and payment details.
| Dividend item | Information |
|---|---|
| FY2026 final cash dividend | Rs. 15 per share recommended |
| Percentage of face value | 150% |
| FY2026 bonus shares | Nil recommended |
| FY2026 right shares | Nil recommended |
| AGM | Scheduled for 28 October 2026, subject to any subsequent notice |
The dividend of Rs. 15 is a proposed distribution for the relevant financial year, not a guarantee of future dividends. Any dividend yield calculation should use a clearly stated share price and the appropriate dividend period.
Sources:
Share Price History and Valuation
The PSX market snapshot for 23 October 2026 at 1:43 PM reported the following market information.
| Market metric | Reported value |
|---|---|
| Share price | Rs. 257.00 |
| Previous close / LDCP | Rs. 258.96 |
| Day's range | Rs. 250.00–263.98 |
| 52-week range | Rs. 185.52–310.89 |
| One-year price change | +4.24% |
| Year-to-date price change | +6.92% |
| Trailing P/E | 4.90 |
| Market capitalisation | Approximately Rs. 7.71 billion |
| Shares outstanding | 30 million |
| Free float | 3 million shares, approximately 10% |
Source: Official PSX FZCM market quote and history.
Understanding FZCM's valuation
At the reported price of Rs. 257.00 and trailing P/E of 4.90, the market valuation reflects approximately Rs. 4.90 for each rupee of trailing earnings under the PSX calculation. This is a dated market snapshot, not a live quote.
A low P/E ratio does not automatically mean a stock is undervalued. Investors should also consider the sustainability of earnings, financing costs, cash flow, capital expenditure, working capital and regulatory risks.
The 52-week range shows that the certificate price has experienced meaningful movement. The relatively low free float—about 10% of outstanding shares—can also affect trading liquidity and price volatility.
The FY2026 dividend recommendation of Rs. 15 per share can be compared with a dated market price for historical analysis, but it should not be presented as a guaranteed forward dividend yield.
Shariah Compliance Status
Fazal Cloth Mills Limited was marked Compliant in the PSX-KMI All Share Islamic Index recomposition published in May 2026, effective 5 June 2026, using accounts dated 31 December 2025.
The published screening information reported a non-compliant income ratio of approximately 0.01%, below the stated 5% threshold.
This is a dated screening result. Shariah status can change after subsequent financial statements and screening reviews, so investors should verify the latest official index membership before relying on it.
Shariah screening and compliance with PSX listing regulations are separate assessments. The company's Shariah-compliant status does not remove the regulatory warning described below.
Sources:
- PSX-KMI All Share Islamic Index recomposition — May 2026
- PSX Shariah-compliant investment resources
- Official PSX FZCM profile
Important PSX Risk Warning Alert
PSX displays a Risk Warning Alert for Fazal Cloth Mills Limited. The exchange states that the company is in continuous violation of specified clauses of PSX regulations and carries a risk of suspension of trading or delisting, subject to the exchange's terms and conditions.
This is a material regulatory risk and should be highlighted prominently in any investor profile. It is separate from the company's financial results and Shariah-screening status.
Investors should review the latest PSX notices to determine whether the warning remains in force and whether the company has disclosed any corrective action.
Official source: PSX — Fazal Cloth Mills Limited.
Operational Update: September 2026 Fire Incident
On 23 September 2026, the company disclosed a fire incident at the blow room of Unit No. 10 and subsequently reported restoration to full operational capacity.
This announcement is relevant because a production incident can affect output, operating costs, insurance recoveries and delivery schedules. The company's statement that capacity had been restored should be included, while any further financial impact should be described only if confirmed in an official disclosure.
Source: PSX company announcements.
Corporate Development: Fazal Gas Distribution Company
In September 2026, Fazal Cloth Mills disclosed the incorporation of Fazal Gas Distribution Company Limited as a subsidiary and subsequently announced a relaxation from consolidation of the subsidiary's financial statements under Section 228(7) of the Companies Act, 2017.
Investors should review the relevant announcements and annual-report notes to understand the subsidiary's business, financial exposure, consolidation treatment and potential effect on future reporting. Do not assume that the subsidiary has a material positive or negative financial effect without supporting figures.
Source: Official PSX announcements — FZCM.
Key Risks for Investors
Regulatory and listing risk: The PSX Risk Warning Alert identifies continuing regulatory violations and possible suspension or delisting.
Textile-sector risk: Yarn and fabric manufacturers are exposed to cotton prices, energy costs, export demand, competition and currency fluctuations.
Financing costs: Interest-rate movements and working-capital needs can affect profitability and cash generation.
Earnings sustainability: FY2026 earnings improved substantially, but future performance depends on margins, demand and operating conditions.
Limited free float: PSX reports free float of approximately 10%, which may affect liquidity and share-price movements.
Operational disruption: The September 2026 fire incident is a relevant operational event even though the company reported restoration to full capacity.
Corporate reporting changes: The newly incorporated subsidiary and the disclosed consolidation relaxation warrant monitoring.
Dividend uncertainty: The FY2026 dividend was recommended by the board. Investors should verify the final approval and payment status and should not assume that future dividends will match the FY2026 recommendation.
What Investors Should Monitor
Before evaluating FZCM, review:
- Latest annual and quarterly financial statements.
- Sales, gross margin, operating profit, EPS and cash-flow trends.
- Cotton, energy and financing costs.
- Official dividend approval and payment notices.
- Share-price history, trading volume and valuation ratios.
- The current PSX Risk Warning Alert and any compliance updates.
- The latest Shariah-screening review.
- The operational and financial implications of the September 2026 fire incident.
- Disclosures relating to Fazal Gas Distribution Company Limited.
Frequently Asked Questions
What is the PSX symbol for Fazal Cloth Mills Limited?
Its Pakistan Stock Exchange symbol is FZCM.
What does Fazal Cloth Mills manufacture?
The company is principally engaged in manufacturing and selling yarn and fabric.
What were FZCM's FY2026 results?
For the year ended 30 June 2026, the company reported sales of approximately Rs. 96.024 billion, profit after tax of Rs. 1.573 billion and EPS of Rs. 52.44.
What dividend was recommended for FY2026?
The board recommended a final cash dividend of Rs. 15 per share, equivalent to 150% of face value. Check the official notices for final approval and payment status.
Is Fazal Cloth Mills Shariah-compliant?
It was marked compliant in the PSX-KMI All Share Islamic Index recomposition effective 5 June 2026, based on accounts dated 31 December 2025. Verify the latest official screening status before relying on it.
Does FZCM have a PSX Risk Warning Alert?
Yes. PSX displays a warning concerning continuing regulatory violations and possible suspension or delisting. Review the exchange's latest notices for current status.
What was the September 2026 operational incident?
The company disclosed a fire at the blow room of Unit No. 10 and subsequently reported restoration to full operational capacity.
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Official Sources
This profile is for educational purposes and is not a recommendation to buy or sell any security.