Feroze1888 Mills Limited
By PSX Investors Zone · Updated October 23, 2026
Feroze1888 Mills Limited (PSX: FML) is a Pakistani textile manufacturer incorporated in 1972 and principally engaged in the production and export of towels. Its products serve international textile and home-textile markets. In FY2026, the company reported unconsolidated sales of Rs. 67.73 billion, gross profit of Rs. 8.41 billion and profit after tax of Rs. 804.27 million, compared with Rs. 99.02 million in FY2025. EPS increased from Rs. 0.25 to Rs. 2.01, although gross profit declined and finance costs remained substantial. FML was classified as Shariah-compliant in the PSX-KMI All Share Islamic Index review effective June 5, 2026, based on December 2025 accounts. The official PSX page also displays a Risk Warning Alert concerning possible suspension or delisting, which investors should assess separately from Shariah status and financial performance.
Feroze1888 Mills Limited (PSX: FML) is a Pakistan Stock Exchange-listed textile manufacturer principally engaged in the production and export of towels. Incorporated in Pakistan in October 1972, the company operates in the textile composite sector and serves domestic and international markets.
The company’s performance is influenced by global demand for home textiles, export orders, cotton and other input prices, energy costs, production efficiency, labour expenses, foreign-exchange movements and competition from international textile exporters.
Important regulatory alert: The official PSX company page displays a Risk Warning Alert stating that the company is in continuous violation of specified regulatory clauses and may face suspension of trading or delisting. Investors should review the current PSX notice and any subsequent compliance announcements before making an investment decision.
Business Overview
Feroze1888 Mills focuses on the production and export of towels. Its operations depend on manufacturing efficiency, product quality, customer relationships, export-market demand and the ability to manage costs throughout the textile production process.
As an export-oriented manufacturer, the company may benefit from international demand and favourable exchange-rate movements. However, currency fluctuations can also increase the cost of imported inputs and financing. Higher electricity, gas, cotton, labour and freight costs can pressure margins, particularly when customers are unwilling to accept higher prices.
Investors should assess the company's production efficiency, export concentration, working-capital requirements, order visibility and ability to maintain profitability through changing market conditions.
Financial Performance
The following figures are from the company's FY2026 financial results. The table uses unconsolidated figures for consistent comparison.
| Financial metric | FY2026 | FY2025 |
|---|---|---|
| Net sales | Rs. 67.735 billion | Rs. 66.111 billion |
| Cost of sales | Rs. 59.323 billion | Rs. 57.040 billion |
| Gross profit | Rs. 8.411 billion | Rs. 9.070 billion |
| Operating profit | Rs. 3.810 billion | Rs. 3.700 billion |
| Finance costs | Rs. 2.450 billion | Rs. 3.068 billion |
| Profit after tax | Rs. 804.269 million | Rs. 99.023 million |
| Earnings per share | Rs. 2.01 | Rs. 0.25 |
Net sales increased by approximately 2.46% in FY2026. Profit after tax rose to Rs. 804.27 million from Rs. 99.02 million in FY2025, while EPS increased from Rs. 0.25 to Rs. 2.01.
Despite this recovery in reported net profit, gross profit fell by approximately 7.26%. The results also show substantial finance costs and other income, so the improvement in net profit should not automatically be interpreted as a comparable improvement in the underlying textile manufacturing margin.
Investors should review the annual report's notes on other income, finance costs, taxation, cash flows, receivables, inventory and borrowings. The distinction between recurring operating performance and gains or other income is particularly important when evaluating the sustainability of earnings.
Shariah Compliance Status
Feroze1888 Mills Limited was classified as Shariah-compliant in the PSX-KMI All Share Islamic Index recomposition announced on May 29, 2026, effective June 5, 2026, based on accounts dated December 31, 2025.
The official screening publication reports the following ratios:
| Screening measure | Reported ratio | Screening benchmark |
|---|---|---|
| Debt / total assets | 24.87% | Below 37% |
| Non-compliant investments / total assets | 0.00% | Below 33% |
| Non-compliant income / revenue | 1.32% | Below 5% |
| Illiquid assets / total assets | 68.55% | At least 25% |
These figures describe the published screening assessment, not a guarantee of future eligibility. Investors should check the latest official index list because Shariah status can change following a new review.
PSX announced a revised interest-bearing debt-to-total-assets threshold, reducing it from 37% to 33%, with implementation from the November 2026 recomposition based on June 2026 annual or half-yearly accounts. The December 2025 screening figures above should not be presented as if the revised threshold had already been applied.
Shariah compliance is separate from the company's profitability, valuation, liquidity and regulatory standing.
Dividend and Corporate Actions
For the financial year ended June 30, 2026, the Board recommended no cash dividend, bonus shares or right shares in its results announcement dated September 7, 2026.
Investors should check the official PSX announcements page for any subsequent corporate actions. A historical dividend, if any, does not establish a current entitlement.
Risk Warning Alert: Suspension or Delisting Risk
The official PSX company page displays a Risk Warning Alert stating that Feroze1888 Mills is in continuous violation of specified clauses 5.11.1 or 5.11.2 and carries the risk of suspension of trading or delisting from the Exchange.
This warning is a material consideration and should remain prominently visible while it appears on the PSX page. Investors should:
- Read the latest PSX alert and its underlying regulatory requirements.
- Check for official updates on compliance or remedial action.
- Review the latest annual and interim financial statements.
- Consider how suspension or delisting could affect their ability to trade the shares.
- Evaluate regulatory standing separately from Shariah eligibility and reported earnings.
The alert does not mean suspension or delisting is certain. Its continued presence nevertheless warrants careful review.
Fundamental Analysis: What Investors Should Examine
When researching FML, investors may focus on the following factors:
- Sales and export demand: Assess growth in export orders, customer demand and product mix.
- Gross margins: Investigate why gross profit declined despite higher sales in FY2026.
- Finance costs: Review borrowings, financing arrangements and the cost of working capital.
- Other income: Determine how much of the FY2026 earnings recovery came from recurring business activity versus other income.
- Foreign exchange exposure: Examine the effects of currency movements on export receipts and input costs.
- Cash flow: Compare accounting profit with cash generated from operations.
- Shariah screening: Confirm inclusion in the latest PSX-KMI All Share Islamic Index review.
- Regulatory status: Investigate the Risk Warning Alert and subsequent PSX disclosures.
- Valuation and liquidity: Compare the market price with the latest financial results while considering regulatory and trading risks.
These considerations support research; they are not a recommendation to buy or sell FML shares.
Frequently Asked Questions
What is the PSX symbol of Feroze1888 Mills Limited?
Its Pakistan Stock Exchange ticker is FML.
What does Feroze1888 Mills Limited do?
The company principally produces and exports towels.
When was Feroze1888 Mills incorporated?
It was incorporated in Pakistan in October 1972.
What were its FY2026 results?
On an unconsolidated basis, net sales were Rs. 67.735 billion, profit after tax was Rs. 804.269 million and EPS was Rs. 2.01.
Is Feroze1888 Mills Shariah-compliant?
Yes. It was classified as compliant in the PSX-KMI All Share Islamic Index review effective June 5, 2026, based on December 31, 2025 accounts. Check the latest official screening publication for subsequent changes.
Did Feroze1888 Mills recommend a dividend for FY2026?
No. The FY2026 results announcement reported no recommended cash dividend, bonus shares or right shares.
Does FML have a PSX Risk Warning Alert?
Yes. The official PSX page displays an alert concerning regulatory violations and potential suspension of trading or delisting. Investors should read the latest notice and subsequent updates.
Does Shariah compliance mean the shares are risk-free?
No. Shariah screening does not guarantee financial strength, profitability, valuation, liquidity or freedom from regulatory risk.
Official Sources
- Pakistan Stock Exchange — Feroze1888 Mills Limited: https://dps.psx.com.pk/company/FML
- PSX-KMI All Share Islamic Index recomposition: https://www.psx.com.pk/psx/files/?file=277899-1.pdf
- Company investor information: https://feroze1888.com/investor/
- Company financial information and annual reports: https://feroze1888.com/investor/financial-information/
- Company announcements: https://feroze1888.com/investor/investor-media/announcements/
This profile is for company research and investor education. Verify current financial statements, Shariah-screening status and regulatory notices from official disclosures before making an investment decision.
This profile is for educational purposes and is not a recommendation to buy or sell any security.