Interloop Posts 53% Profit Jump to Rs4.3 Billion on Higher Export Sales

Interloop Limited reported a 53 percent year-on-year increase in profit to Rs4.3 billion in the first quarter of FY27, up from Rs2.8 billion a year earlier, according to Business Recorder. The company reported earnings per share of Rs3.05 for the quarter, compared with Rs2.00 in 1QFY26.

Interloop's Export Sales and Margin Pressure

Interloop is Pakistan's largest listed apparel company and a vertically integrated textile manufacturer producing hosiery, denim, apparel and activewear for global brands, according to akta.pro company records. Its quarterly profit also rose 12 percent from Rs3.8 billion in the preceding quarter.

Revenue climbed 14 percent year-on-year to Rs49.7 billion from Rs43.8 billion, which AKD Securities attributed to higher export volumes supported by capacity expansion and greater utilisation across the hosiery, denim and apparel segments. Gross margin declined to 22.8 percent from 23.3 percent, mainly due to lower prices in segments other than yarn and appreciation of the rupee, the report said.

Operating expenses increased 15 percent year-on-year to Rs4.7 billion, primarily on higher distribution expenses. Other income doubled year-on-year to Rs1.7 billion, which AKD Securities said was likely attributable to gains on derivative financial instruments. Finance costs fell 8 percent to Rs1.6 billion, reflecting lower rates under the Export Finance Scheme despite higher outstanding borrowings.

The effective tax rate declined to 29 percent from 38 percent in the same period last year following the removal of super tax. Compared with the preceding quarter, revenue declined 11 percent from Rs55.6 billion, while gross profit fell 1 percent to Rs11.3 billion. Other income increased 67 percent quarter-on-quarter, while finance costs rose 13 percent to Rs1.6 billion.

Interloop's Expansion and Sustainability Record

Interloop's recent company records include a $300 million infrastructure investment programme adding a vertical apparel plant, a new seamless facility, fifth and sixth hosiery plants, a denim fabric mill and additional capacity to support a Vision 2025 revenue target of $700 million by FY2026, according to akta.pro company records. The company announced a $35.2 million investment to establish a new 60,000 m² ready-made garments facility in Egypt's Suez Canal Economic Zone at Al-Qantara West, expected to create over 1,000 direct jobs.

Interloop secured LEED Gold Certification for Hosiery Plant 6 at the Apparel Park in November 2025, with 67 points under LEED v4 BD+C: New Construction across 256,324 sq ft. The company's FY2025 sales figure was 173,381,533 in PKR thousands, and its economic value generated was $623 million.

Interloop's FY2026 Revenue Target

Interloop's Vision 2025 sets a revenue target of $700 million by FY2026, per akta.pro company records. The company's Egypt facility and its $300 million infrastructure programme are tied to that target.