Pakistan’s top 20 listed textile companies recorded a combined profit of Rs. 51.9 billion in fiscal year 2026, marking an 11% increase compared with the previous year, according to a report by Topline Securities. Lower finance costs and reduced effective tax rates supported the growth in earnings.
The companies generated combined sales of Rs. 1.4 trillion during FY26, remaining largely unchanged year-on-year. Their effective tax rate declined to 33.2% from 37.1%, while finance costs fell 19% to Rs. 54.5 billion due to lower financing rates and reduced borrowing under the Export Finance Scheme.
Despite higher profits, gross margins remained stable at 13.1%, while gross profit and sales declined slightly by 0.2% and 0.3%, respectively.
Pakistan’s textile exports reached a record $17.6 billion in FY26, increasing 2% year-on-year and accounting for 57% of the country’s total goods exports. Value-added textile exports rose 3% to $13 billion.
Interloop, Sapphire Textile Mills, and Nishat Mills were the largest contributors to listed textile sector earnings, collectively accounting for 48% of total profits. Interloop’s consolidated profit surged 129% to Rs. 12.7 billion, while Sapphire Textile Mills’ unconsolidated profit increased 73% to Rs. 6.8 billion. In contrast, Nishat Mills’ unconsolidated profit declined 9% to Rs. 5.5 billion.
Looking ahead, Topline Securities expects lower financing costs and measures announced in the FY27 budget to support profitability. However, high energy costs, uncertainty surrounding Pakistan’s GSP+ status, and a potential slowdown in major export markets, including the United States and Europe, remain key challenges for the textile industry.
