Karachi: The textile sector in Pakistan experienced a significant increase in profitability during the first quarter of the fiscal year 2027, driven by a rise in exports and an expansion in gross margins. The financial performance was bolstered by enhanced sales, reduced taxation, and an increase in other income for certain companies within the sector.

According to AKD Securities Limited, the earnings growth was observed across all companies within its coverage, with the sector benefiting from several favorable conditions. These included improving export figures, a reduction in interest rates, and a beneficial taxation regime. The firm maintains an 'Overweight' stance on the sector, recommending Interloop Limited (ILP) and Nishat Mills Limited (NML) as preferred investment picks.

The report highlights the sector's ability to leverage these favorable conditions, suggesting a positive outlook for the coming quarters. The combination of strategic financial management and a supportive economic environment has positioned the textile industry for sustained growth, underscoring its critical role in Pakistan's economic landscape.