Aruj Industries Limited posts continuous losses and halts operations
Aruj Industries (PSX: ARUJ) has recorded steep revenue declines, mounting net losses and has suspended production due to liquidity constraints, signalling a deteriorating outlook for the textile segment.
Share
Desk Analysis
How This Affects the Exchange
Sector Effect
Negative · Do not buy
Textile sector suffers heavy losses at ARUJ; avoid buying.
Sectors & Direction
Desk read
Desk call: Do not buy · Negatively affected
- TextileNegatively affected
Companies
Companies Mentioned
- ARUJ· Negatively affected · Do not buy
Mentions in This Briefing
Sectors: Textile — Negative · Do not buy. PSX tickers: ARUJ. Textile sector suffers heavy losses at ARUJ; avoid buying.
Full Story
Open on Business Recorder## Company overview
Aruj Industries Limited (PSX: ARUJ), incorporated in 1992, manufactures fusible interlining and provides dyeing, bleaching and stitching services for fabrics. As of 30 June 2025 the company had 10.458 million shares outstanding, with insiders holding about 66 % and the public 32.6 %.
## Financial performance 2021‑2025
- 2021: Revenue rose 18.8 % to PKR 1.39 billion, driven by recovered orders and a weaker rupee boosting export values. Gross profit margin fell to 10.14 % and net profit was PKR 13.33 million (EPS PKR 1.27). - 2022: Revenue slipped 6.7 % to PKR 1.30 billion. Gross profit fell 39 % and the company posted a net loss of PKR 20.79 million (LPS PKR 1.99). Gearing rose to 63.9 %. - 2023: Revenue plunged 33.9 % to PKR 858 million. The firm recorded an operating loss of PKR 105.42 million and a net loss of PKR 139.55 million (LPS PKR 13.34). Current liabilities exceeded current assets by PKR 101 million. - 2024‑2025: Top‑line fell dramatically, down 58.2 % in 2024 and 99.9 % in 2025, with sales shrinking to PKR 0.19 million in 2025. Net losses widened to PKR 336.81 million in 2024 and narrowed to PKR 40.42 million in 2025, but equity remained negative. - 9MFY26: Operations were put on hold. Net sales were zero, gross loss PKR 16.18 million, operating loss PKR 21.86 million and net loss PKR 21.86 million.
## Operational shutdown
The company halted all production in early 2026 after exhausting working‑capital facilities and being unable to secure fresh financing. Workforce was reduced from 304 employees in 2021 to just three by 2025. No export orders were taken, and processing income ceased.
## Outlook
Aruj’s persistent losses, negative equity and inability to meet short‑term liabilities raise serious doubts about its going‑concern status. Without a capital injection or restructuring, the firm is likely to remain dormant.
## Shariah perspective
The company’s activities remain within permissible textile manufacturing, but the severe financial distress and lack of liquidity make it unsuitable for investment from a risk‑adjusted Shariah‑compliant standpoint.