Interloop set to outpace Pakistan’s textile export growth

Mettis Global reported, citing JS Research, that Interloop Limited (PSX: ILP) is projected to grow faster than Pakistan's textile industry this year. The company's exports are forecast to rise 3% year on year to about $630m in FY26, against 1.9% growth for the industry as a whole. Its Apparels segment is also set to surpass the $100m level for the first time.

JS Research expects FY26 earnings per share of Rs8.87, compared with Rs3.70 in FY25, as margins improve across segments. The estimate also reflects lower outsourcing for Hosiery orders and the end of start-up problems at the Apparels plant commissioned last year. Financial charges are seen falling nearly 30% year on year, helped by stronger internal cash generation and a lower effective cost of debt after the policy rate cut.

For the fourth quarter, EPS is projected at Rs2.20, up 16% year on year but broadly unchanged from the prior quarter. Higher energy prices, greater use of gas-fired captive plants during power outages, and rising raw material costs are expected to trim margins slightly. Even so, gross margin is forecast to improve by 3 percentage points year on year as the Apparels segment nears break-even.