Interloop Limited Corporate Briefing Session Presentation FY2026

Key takeaways

• Annual revenue reached over $654 million, supporting Interloop's position as the largest textile company on PSX by market capitalization.
• Vision 2025 revenue target of $700M was 93% achieved with $654M actual in FY26, while value-added revenue and lower carbon resource targets were exceeded.
• Sales grew 5.5% year-on-year to PKR 183 billion in FY26, achieving a 19% CAGR from FY22 supported by a favorable mix and higher capacity utilization.
• Net profit surged 145% to PKR 13 billion in FY26, driven by margin expansion, lower finance costs, and improved new business performance.
• Tax-to-sales ratio doubled to 4% in FY26, reflecting a higher tax burden under NTR with an effective tax rate of 36.5%.
• EBITDA rose 38% year-on-year to PKR 34 billion in FY26, reflecting stronger margins and improved operating performance.
• Earnings per share (EPS) increased to PKR 9.38 in FY26 from PKR 3.84 in the previous year.
• Total dividend for FY26 is PKR 4.0 per share, consisting of an interim dividend of PKR 2.0 and a proposed final dividend of PKR 2.0 subject to AGM approval.
• Gearing ratio improved to 57% in FY26 due to the early settlement of long-term loans and better working capital management.
• Interest coverage recovered to 4.8x in FY26 compared to 2.0x in FY25, supported by higher operating profit and 35% lower finance costs.
• Gross profit increased 19.5% to PKR 42,025 million in FY26, aided by lower raw-material consumption at 43% of sales compared to 46% previously.
• Profit from operations grew 46.8% to PKR 26,921 million in FY26, boosted by PKR 2.7 billion in derivative gains, discounting of SIDC, and removal of EDS.
• Regional sales breakup for FY26 showed Europe accounting for 46% (PKR 84 billion), United States at 45% (PKR 82 billion), and Asia & Others at 9% (PKR 17 billion).
• Business-wise sales breakdown for FY26 stood at 94% for garments (hosiery 62%, apparel 17%, denim 15%, activewear 1%) and 6% for yarns.
• Key external headwinds identified for FY27 include the US-Iran conflict affecting energy and freight costs, tariff pressures, high domestic costs relative to regional peers, and an appreciating or stable local currency.