KARACHI: Interloop Limited (ILP) posted a 53 percent year-on-year increase in profit to Rs4.3 billion in the first quarter of FY27, compared with Rs2.8 billion in the same period last year, supported by higher export sales, increased other income and a lower effective tax rate, according to a research report.
The company reported earnings per share (EPS) of Rs3.05 for 1QFY27, up from Rs2.00 in 1QFY26. Its quarterly profit also increased 12 percent from Rs3.8 billion in the preceding quarter.
Interloop’s revenue rose 14 percent year-on-year to Rs49.7 billion during the quarter from Rs43.8 billion a year earlier. AKD Securities attributed the increase to higher export volumes, supported by capacity expansion and greater utilisation across the company’s hosiery, denim and apparel segments.
However, the company’s gross margin declined to 22.8 percent from 23.3 percent in the same period last year, 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 due to 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. Meanwhile, finance costs fell 8 percent to Rs1.6 billion, reflecting lower rates under the Export Finance Scheme (EFS), despite higher outstanding borrowings.
The company’s effective tax rate declined to 29 percent in 1QFY27 from 38 percent in the corresponding period last year following the removal of super tax.
Compared with the preceding quarter, Interloop’s 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.
Copyright Business Recorder, 2026