⚡ Flash Summary

Interloop Limited’s unaudited financial results for Q1 2026 show a positive trajectory. Net sales increased to PKR 43.77 billion, up from PKR 41.63 billion in Q1 2025. Profit for the period surged significantly to PKR 2.797 billion compared to PKR 222 million in the same period last year. Basic and diluted earnings per share (EPS) also rose sharply from PKR 0.16 to PKR 2.00.

📌 Key Takeaways

• 📈 Revenue growth: Net sales increased by approximately 5.1% YoY, reaching PKR 43.77 billion.
• 💰 Profitability surge: Profit for the period jumped dramatically, increasing by 1158.5% to PKR 2.797 billion.
• ⭐ EPS boost: Earnings per share saw a substantial rise from PKR 0.16 to PKR 2.00.
• 📊 Gross profit margin improved: Gross profit increased from PKR 7.76 billion to PKR 10.18 billion.
• 🛑 No dividends: The company did not declare any cash dividend, bonus shares, or right shares for the quarter.
• 💼 Operational efficiency: Administrative expenses increased from PKR 2.25 billion to PKR 2.55 billion.
• 💸 Finance cost reduction: Finance costs decreased significantly from PKR 2.85 billion to PKR 1.70 billion.
• 🧾 Tax impact: Income tax expenses increased substantially from PKR 77.7 million to PKR 1.75 billion.
• ✅ Asset base: The company’s total assets stand at PKR 174.42 billion as of September 30, 2025.
• 🏦 Liabilities: Total equity and liabilities amount to PKR 174.42 billion.
• 🌱 Reserves: The company holds PKR 3.16 billion in reserves.
• 💼 Unappropriated profit: The unappropriated profit is PKR 40.84 billion.
• 💵 Cash position: Cash and bank balances slightly increased to PKR 360.23 million from PKR 357.52 million.
• 🏭 Non-current assets: Property, plant, and equipment stand at PKR 81.88 billion.

🎯 Investment Thesis

Based on the strong Q1 2026 financial results, a BUY recommendation is warranted. The substantial increase in profit and EPS, coupled with revenue growth and decreasing finance costs, indicates improved operational efficiency and financial health. A price target of PKR 35 is set, based on a P/E ratio of 17.5x, in a medium-term horizon, assuming the company can maintain this level of performance.