Interloop profit jumps 8x to Rs2.74bn in Q1

October 27, 2025 (MLN): Interloop Limited (PSX: ILP), Pakistan's largest textile exporter and a leading manufacturer of hosiery, denim, reported a profit after tax of Rs2.74bn for the quarter ended September 30, 2025, marking an exceptional 719.91% increase from Rs334.5 million in the corresponding period last year.

Earnings per share (EPS) surged 716.67% to Rs1.96, compared to Rs0.24 in the same quarter of 2024.

The company's net sales grew 5.75% year-on-year to Rs45.20bn, up from Rs42.75bn, demonstrating steady sales performance during the quarter.

Meanwhile, cost of sales remained relatively flat at Rs34.68bn, increasing just 0.22%, leading to a gross profit of Rs10.52bn, up an impressive 29.23% from Rs8.14bn last year. Gross margin improved substantially to 23.3%, compared to 19.0% in the same period of 2024.

Distribution costs decreased 14.67% to Rs1.62bn, showing improved operational efficiency, while administrative expenses rose 13.55% to Rs2.76bn.

Other operating expenses climbed sharply by 150.49% to Rs607.4m, whereas other income increased 154.63% to Rs706.9m.

Driven by enhanced gross margins and tight cost control, profit from operations surged 62.23% to Rs6.24bn, compared to Rs3.84bn in the prior-year quarter.

Finance costs declined significantly by 40.47% to Rs1.70bn, contributing to the bottom-line improvement.

Profit before income tax and levies rose dramatically by 360.74% to Rs4.53bn from Rs984.1m last year.

Notably, the company did not incur any levies during the current quarter, compared to Rs570.0m in the prior year.

After accounting for an income tax expense of Rs1.79bn, profit before tax stood at Rs4.53bn, an extraordinary 994.86% increase from Rs414.1m in the corresponding quarter of 2024.

The net profit margin improved to 6.1%, compared to 0.8% in the same quarter last year.

The quarterly performance highlights Interloop's remarkable profitability transformation on the back of modest revenue growth, substantially improved operational efficiency, expanded gross margins, reduced financing expenses, and sustained demand from global brands including Nike, Adidas, H&M and Puma.

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