Karachi: Textile profitability in Pakistan is projected to increase significantly due to higher exports and the expansion of gross margins. This positive outlook is further bolstered by gains from the remeasurement of the SIDC.

According to AKD Securities Limited, all companies within their coverage universe, specifically Interloop Limited (ILP), Nishat Mills Limited (NML), and Nishat Chunian Limited (NCL), are expected to report higher profitability for the fourth quarter of the fiscal year 2026. The anticipated increase is attributed to the factors of higher exports, margin expansions, and remeasurement gains.

AKD Securities Limited has maintained a 'BUY' recommendation for ILP, NML, and NCL, setting a December 2026 target price of PKR 150 per share for ILP, PKR 318 per share for NML, and PKR 84 per share for NCL. The firm remains optimistic about the sector’s growth prospects given the current economic indicators.