Lahore: The Pakistan Credit Rating Agency Limited (PACRA) has maintained the entity ratings for Glamour Textile Mills Limited as the company navigates a challenging environment in Pakistan's spinning sector. The sector has seen a slight recovery with a 1% increase in cotton yarn production during FY26, but continues to face issues such as high energy costs and expensive raw material procurement.

According to The Pakistan Credit Rating Agency Limited, despite a 28% decline in net sales to PKR 3,259 million, Glamour Textile Mills managed to keep sales volumes steady, although the reduced average selling prices led to this revenue dip. The company's gross margin slightly decreased, while energy costs rose to account for a larger portion of sales. Financially, Glamour's leverage improved due to reduced debt levels, yet the company reported a net loss owing to tax charges.

The company, which operates primarily in the local market with a modest operational scale, has been focusing on energy cost reduction, including the installation of a solar plant. These efforts are seen as critical to sustaining operations and improving profitability. The ratings' stability depends on Glamour's ability to maintain robust operations, capacity utilization, and adherence to financial discipline amidst ongoing market pressures.