AsiaNet-Pakistan Premier Editorial Content and Press Release Distribution Service
Karachi: The textile sector in Pakistan is poised for a significant upturn in profitability during the first quarter of fiscal year 2026, driven by enhanced gross margins and a reduction in finance costs, according to an analysis by AKD Securities Limited.
The AKD Textile Universe, a representation of the sector’s performance, is expected to see its profitability increase fourfold compared to the previous year. The report highlights that key players in the industry, such as Nishat Mills Limited (NML) and Nishat Chunian Limited (NCL), are projected to experience a substantial boost in their earnings.
NML’s earnings are anticipated to rise by 13 percent year-on-year, while NCL’s earnings could see a dramatic 14-fold increase. The earnings per share (EPS) for NML and NCL are expected to be PkR3.04 and PkR2.08, respectively, for the first quarter of the fiscal year.
AKD Securities has reiterated its ‘Buy’ recommendation for Interloop Limited (ILP), NML, and NCL. The firm has set target prices for June 2026 at PkR111 per share for ILP, PkR277 per share for NML, and PkR68 per share for NCL, reflecting confidence in the sector’s growth trajectory.
The projections underscore a positive outlook for Pakistan’s textile industry, which has been navigating through challenging economic conditions. The expected improvements in profitability are likely to bolster investor confidence and could have broader implications for the country’s economic landscape.