Karachi: Interloop Ltd. announced its financial results for the second quarter of fiscal year 2026, revealing a substantial increase in profitability. The company reported a profit of PkR3.5 billion, equating to an earnings per share of PkR2.5, which marks a threefold increase compared to the PkR1.2 billion profit, or PkR0.8 per share, recorded in the same period last year. This performance surpassed expectations, primarily due to increased other income and improved gross margins. Additionally, the company declared a half-yearly dividend of PkR2.0 per share.

According to AKD Securities Limited, Interloop Ltd.'s revenue for the second quarter reached PkR43.6 billion (US$155 million), representing a 3% year-over-year increase from PkR42.3 billion. This growth in revenue is attributed to higher export volumes, particularly in the Apparel segment. The company's gross margins improved to 23.9%, up from 20.1% in the same period last year, aided by decreasing cotton prices and lower ramp-up losses in the Hosiery and Apparel segment due to enhanced utilization.

Operating expenses for Interloop Ltd. declined by 9% year-over-year to PkR3.7 billion, driven by a 29% reduction in distribution costs, which was largely due to lower freight charges. Other income saw a significant rise, increasing by 5.9 times year-over-year, likely due to gains on derivative financial instruments.