Interloop, Nishat Mills and Nishat Chunian Boost FY2025‑26 Profits 66% to Over Rs 20 billion on Export Surge

Combined net profit of the three firms surged past Rs 20 billion in FY 2025‑26, a 66 % increase over the previous year.

The AKD Research analysis released on 9 October revealed that Interloop, Nishat Mills and Nishat Chunian together posted a collective earnings boost of more than two‑fold due to a sharp rise in export shipments and a fall in financing costs. Lower interest rates on foreign‑exchange loans trimmed the firms’ debt burden, allowing a larger share of revenue to flow into the bottom line.

Export volumes were the primary driver of the upturn. International demand for Pakistani cotton yarn and woven fabrics grew steadily, buoyed by higher textile consumption in Europe, the Middle East and South‑East Asia. As the country’s leading foreign‑exchange earner, the textile sector’s stronger earnings help mitigate the pressure on Pakistan’s balance of payments, offering a modest cushion against the persistent current‑account deficit.

Interloop, the world’s largest cotton yarn exporter, contributed the lion’s share of the profit jump, benefiting from new contracts with major garment makers. Nishat Mills, a vertically integrated producer of denim and knitwear, reported a notable lift in margins after expanding its export orders to North‑American retailers. Nishat Chunian, which focuses on fabric manufacturing, saw its earnings rise as it tapped into higher‑value markets for blended and technical textiles.

The earnings surge carries broader implications for the domestic economy. Higher profitability can translate into increased payrolls and potential wage hikes for the sector’s sizable workforce, which employs over two million Pakistanis directly and indirectly. Moreover, stronger financial results may encourage further capital inflows and modernization projects, helping the industry confront lingering challenges such as energy shortages and volatile global cotton prices. The results underscore the textile sector’s resilience, positioning it as a cornerstone of Pakistan’s export strategy amid a fluctuating international market.