Interloop Reports Fourfold Profit Surge in First Half of FY26

Interloop Limited has delivered a strong financial performance in the first half of fiscal year 2026, reporting a sharp increase in profitability that reflects improving margins and better cost management. The textile exporter announced its 1HFY26 results, showing a consolidated profit of Rs. 5.9 billion, translating into earnings per share of Rs. 4.21.

This performance marks a four times increase compared to the same period last year, highlighting a significant turnaround for the company amid challenging global and local economic conditions. Analysts view the results as a positive signal for Pakistan’s export-oriented textile sector, which has faced pressure from high energy costs and fluctuating demand.

In the second quarter of FY26, Interloop posted consolidated earnings of Rs. 3.2 billion with an EPS of Rs. 2.25. This represents a 2.8 times year-on-year increase and a 15 percent rise on a quarter-on-quarter basis. The steady improvement across consecutive quarters indicates growing operational stability and financial resilience.

According to market analysts, including insights shared by Topline Securities, the strong quarterly performance was primarily driven by higher other income and reduced finance costs. Lower borrowing expenses provided relief to the company’s bottom line at a time when interest rates have remained elevated across the economy.

Higher other income also played a key role in boosting profitability, suggesting better returns from non-core operations and financial assets. This diversification in income streams has helped Interloop offset pressures from raw material costs and global pricing competition.

The company’s results have drawn attention from investors, as consistent earnings growth often signals improved cash flow and balance sheet strength. Market participants believe that Interloop’s disciplined financial management and focus on efficiency are beginning to yield tangible results.

Interloop is one of Pakistan’s leading textile exporters, with a strong presence in international markets. Its performance is closely watched as a benchmark for the broader textile industry, which contributes significantly to the country’s exports and employment.

Experts note that sustained profitability will depend on stable energy pricing, currency trends, and global demand conditions. However, the company’s first-half results suggest it is better positioned to navigate these challenges compared to previous years.

The strong earnings may also provide room for future investments, capacity expansion, or improved shareholder returns, depending on management’s strategic priorities. Investors are expected to closely monitor the company’s outlook for the second half of FY26.

Overall, Interloop’s fourfold profit growth in the first half of FY26 underscores a notable recovery phase, reinforcing optimism around its financial trajectory and strengthening confidence in Pakistan’s export-led manufacturing sector.