Interloop Ltd.PSX: ILP

Transmission of Half Year Report for the Period Ended December 31, 2025

Feb 24, 2026 at 5:15 AM UTC · Issued by Interloop Ltd.

HALF YEAR REPORT

FOR THE PERIOD ENDED

DECEMBER 31, 2025

FULL FAMILY CLOTHING PARTNER OF CHOICE

OUR MISSION

To be an agent of positive change for stakeholders and the community

by pursuing an ethical and sustainable business.

TABLE OF CONTENTS

Company Information 02

Directors' Review Report 04

ٹروپرہزئاجیکز/ٹ ی رئاڈ 11

Unconsolidated Condensed Interim Financial Statements

Independent Auditors' Review Report to the Members 13

Unconsolidated Condensed Interim Statement of Financial Position 14

Unconsolidated Condensed Interim Statement of Profit or Loss 16

Unconsolidated Condensed Interim Statement of Comprehensive Income 17

Unconsolidated Condensed Interim Statement of Changes in Equity 18

Unconsolidated Condensed Interim Statement of Cash Flows 19

Notes to the Unconsolidated Condensed Interim Financial Statements 21

Consolidated Condensed Interim Financial Statements

Independent Auditors' Review Report to the Members 37

Consolidated Condensed Interim Statement of Financial Position 38

Consolidated Condensed Interim Statement of Profit or Loss 40

Consolidated Condensed Interim Statement of Comprehensive Income 41

Consolidated Condensed Interim Statement of Changes in Equity 42

Consolidated Condensed Interim Statement of Cash Flows 43

Notes to the Consolidated Condensed Interim Financial Statements 45

COMPANY INFORMATION

BOARD OF DIRECTORS

Musadaq Zulqarnain

Chairperson / Non-Executive Director

Navid Fazil

Chief Executive Officer / Executive Director

Muhammad Maqsood

Executive Director / Group CFO

Farwa Hasnain

Independent Director

Fatima Asad Khan

Independent Director

Romana Abdullah

Independent Director

Tariq Iqbal Khan

Independent Director

Faryal Sadiq

Executive Director

Jahan Zeb Khan Banth

Non-Executive Director

AUDIT COMMITTEE

Tariq Iqbal Khan

Chairperson

Farwa Hasnain

Member

Romana Abdullah

Member

Jahan Zeb Khan Banth

Member

HUMAN RESOURCE & REMUNERATION COMMITTEE

Fatima Asad Khan

Chairperson

Navid Fazil

Member

Farwa Hasnain

Member

Faryal Sadiq

Member

Jahan Zeb Khan Banth

Member

NOMINATION COMMITTEE

Musadaq Zulqarnain

Chairperson

Navid Fazil

Member

Muhammad Maqsood

Member

RISK MANAGEMENT COMMITTEE

Tariq Iqbal Khan

Chairperson

Muhammad Maqsood

Member

Fatima Asad Khan

Member

Romana Abdullah

Member

ENVIRONMENTAL, SOCIAL & GOVERNANCE COMMITTEE

Navid Fazil

Chairperson

Farwa Hasnain

Member

Faryal Sadiq

Member

CHIEF FINANCIAL OFFICER

Muhammad Maqsood

COMPANY SECRETARY

Rana Ali Raza

HEAD OF INTERNAL AUDIT

Jamshaid Iqbal

CHIEF INFORMATION OFFICER

Muhammad Yaqub Ahsan Bhatti

LEGAL ADVISOR

Haidermota & Co.

AUDITORS

Kreston Hyder Bhimji & Co. Chartered Accountants

SHARE REGISTRAR / TRANSFER AGENT

CDC Share Registrar Services Limited

KARACHI OFFICE:

Share Registrar Department

CDC House, 99-B, Block B, S.M.C.H.S, Main Shahra-e-Faisal, Karachi - 74400

Tel: (92-21) 111-111-500

LAHORE OFFICE:

Mezzanine Floor,

South Tower, LSE Plaza, 19-Khayaban-e-Aiwan-e-Iqbal, Lahore.

Tel: (92-42) - 36362061-66

BANKERS

Allied Bank Limited Bank Alfalah Limited Faysal Bank Limited Habib Bank Limited

Habib Metropolitan Bank Limited MCB Bank Limited

MCB Islamic Bank Limited Meezan Bank Limited National Bank of Pakistan

Standard Chartered Bank Pakistan Limited The Bank of Punjab

United Bank Limited

E- COMMUNICATION

Website: https://www.interloop-pk.com

LinkedIn: Interloop Limited Twitter: @InterloopLtd Instagram: interlooplimited YouTube: Interloop Limited

REGISTERED OFFICE

Interloop Limited

15-A, Peoples Colony No. 1, Faisalabad, Pakistan Phone: (92-41) 4360400

Fax: (92-41) 2428704

Email: externalaffairs@interloop.com.pk Website: https://www.interloop-pk.com

PLANT LOCATIONS

Hosigry Dlant 1 - Corporatg Offficg 1 KM Khurrianwala-Jaranwala Road, Khurrianwala,

Faisalabad, Pakistan.

Hosiery Plant 2 & 4

7 KM Khurrianwala-Jaranwala Road, Khurrianwala,

Faisalabad, Pakistan.

Hosiery Plant 3 & Denim Plant

8 KM, Manga-Raiwind Road, Distt. Kasur, Lahore, Pakistan.

Apparel Plant 1

117 / J.B near Paharang Nala, Millat Road, Dhanola

Faisalabad, Pakistan.

Hosiery Plant 5 & 6

Apparel Plant 2

6 KM, By Pass Road, Khurrianwala, Faisalabad, Pakistan.

DIRECTORS' REVIEW REPORT

The Board of Directors of Interloop Limited (Interloop or the Company) is pleased to present the Company's un-audited financial results for the half year ended December 31, 2025, duly reviewed by the statutory auditors.

ECONOMIC AND INDUSTRY REVIEW

Pakistan's economy demonstrated uneven performance during the first half of FY2026 (1HFY'26), as overall economic activity remained subdued amid a challenging macroeconomic backdrop. Although key sectors recorded moderate growth, overall momentum remained cautious. Reflecting weaker export performance and subdued investment activity, the IMF revised Pakistan's GDP growth forecast downward to 3.2% from the earlier target of 3.7%. Meanwhile, inflation remained within the anticipated range, providing room for monetary easing. In response, the State Bank of Pakistan reduced the policy rate by 50 basis points, marking the beginning of a measured easing cycle.

External accounts remain under pressure during the 1HFY'26 amid a widening trade imbalance. The trade deficit widened by 35.5% year-on-year (YOY) to USD 19.3 billion, compared to USD 14.3 billion in the same period last year, as imports rose by 11.6% to USD 34.5 billion while exports declined by 8.9% to USD 15.1 billion. Strong workers' remittance inflows of USD 19.7 billion, up 10.7% from USD 17.8 billion a year earlier, along with an IMF tranche disbursement of USD 1.2 billion, helped support the external account. These inflows contributed to growth in foreign exchange reserves, which reached approximately USD 21 billion by December 2025, and aided in maintaining exchange rate stability.

Textile and Apparel exports remained range bound during the 1HFY'26, rising marginally by 0.9% YOY to USD 9.2 billion, compared to USD 9.1 billion in the same period last year. While overall export growth remained subdued, value-added segments showed resilience: readymade garments increased by 4.9% to USD 2.1 billion, knitwear rose by 4.1% to USD 2.7 billion, and bedwear improved by 1.9% to USD 1.6 billion. Domestic cotton production continued its gradual decline, with cotton bales falling by 0.3% to 5.43 million bales, compared to 5.45 million in 1HFY'25.

UNCONSOLIDATED FINANCIAL REVIEW

During 1HFY'26, the Company reported revenue growth of 4.1%, with net sales rising from Rs. 83,971 million in 1HFY'25 to Rs. 87,418 million. Consequently, gross profit rose to Rs. 20,618 million, compared to Rs. 16,284 million in the corresponding period last year, while the gross profit margin improved to 23.6% from 19.4%. This growth was primarily driven by a favorable sales mix, effective cost management, and improved capacity utilization.

Improved gross profitability translated into stronger operating performance during the period, with profit from operations increased to Rs. 13,737 million from Rs. 8,067 million in 1HFY'25. Effective working capital management reduced

average borrowings, leading to a significant decline in financial costs. As a result, profit after taxation stood at Rs. 6,268 million, compared to Rs. 1,373 million in the corresponding period last year, while the net profit margin expanded to 7.2% from 1.6%. The improved performance reflects the Company's continued focus on disciplined cost management, customer portfolio management and enhanced capacity utilization in new businesses. Earnings per share for the period improved to Rs. 4.47 from Rs. 0.98 in the same period last year.

The summarized un-consolidated financial results for the half year ended December 31, 2025 as against December 31, 2024, are as follows:

Half Year ended December 31 2025 2024 Variance
Rs. in Million			%
Net - Sales	87,418	83,971	4.1%
Gross Profit	20,618	16,284	26.6%
Profit from Operations	13,737	8,067	70.3%
Net Profit	6,268	1,373	356.6%
Gross Profit Ratio	23.6%	19.4%	4.2%
Net Profit Ratio	7.2%	1.6%	5.5%
Earnings per Share - Basic and Diluted (Rupees)	4.47	0.98	356.6%

100,000

80,000

87,418 83,971

Rs. in Million

60,000

40,000

20,000

20,618 16,284

13,737 8,067 6,268

1,373

0 Sales

Gross profit Profit from operations Net Profit

Half year ended December 31, 2025 Half year ended December 31, 2024

CONSOLIDATED FINANCIAL REVIEW

During 1HFY'26 the Group recorded net sales of Rs. 90,393 million, reflecting YOY increase of 3.5% compared to Rs. 87,349 million in the corresponding period last

year. The Group's profitability improved significantly, with gross profit rising by 23.5% to Rs. 21,107 million from Rs. 17,087 million in the same period last year. Profit Attributable to Interloop Shareholders surged to Rs. 6,032 million, reflecting a substaintial growth of 317.9% compared to Rs. 1,443 million in the corresponding period last year. Consequently, earnings per share improved significantly to Rs. 4.30, up from Rs. 1.06 in the same period last year.

The Group recorded a slight reduction in EPS and profitability as compared with unconsolidated results, primarily attributable to softer performance from a group company amid ongoing U.S.-China tariff challenges.

The summarized consolidated financial results for the half year ended December 31, 2025, as against December 31, 2024, are as follows:

Half Year ended December 31 2025 2024 Variance
Rs. in Million			%
Net - Sales	90,393	87,349	3.5%
Gross Profit	21,107	17,087	23.5%
Profit from Operations	13,396	8,201	70.3%
Profit Attributable to Interloop Shareholders	6,032	1,443	317.9%
Net Profit	5,899	1,483	297.8%
Gross Profit Ratio	23.4%	19.6%	3.8%
Net Profit Ratio	6.5%	1.7%	4.8%

FUTURE OUTLOOK

Global economic growth is expected to remain modest, projected at 3.1-3.3%, supported by investment and technology sectors but constrained by trade tensions and geopolitical risks, including in US-Iran unrest and Greenland-related disputes. Inflationary pressures are moderating, allowing some central banks to adopt more accommodative monetary policies. In the United States, consumers are shifting toward value conscious spending, while European households face weaker demand due to slower wage growth. Overall, global growth is expected to be cautious, shaped by consumer behavior and geopolitical uncertainties.

In Pakistan, macroeconomic conditions are expected to remain cautiously stable, supported by gradual recovery in agriculture, reconstruction activity, and moderate growth in services sector. Inflation is expected to remain below recent peaks, allowing for a relatively accommodative monetary stance. Nevertheless, the external account remains vulnerable to risks arising from a widening trade deficit and slowing exports growth.

The Management remains vigilant to the evolving global and domestic landscape and continues to implement proactive strategies to ensure operational resilience. In response to global demand softness and market volatility, Interloop will remain focused on optimizing its customer portfolio, rationalizing costs, improving capacity utilization, and strategically targeting new markets to sustain growth and competitiveness.

The Company continued to drive social impact and sustainability through its CSR and responsible business initiatives. In education, it supported TCF schools, established a new girls' school, and organized Sports Week. In healthcare, it contributed to an operation theater at Mujahid Hospital and promoted inclusivity by supporting the 1st Women's Blind Cricket World Cup. Community initiatives included aid to Tanzeem Al Lissan, renovation of the Autism Centre, and ongoing support to the Karachi Down Syndrome Program. On sustainability, the Company achieved Better Cotton Initiative and OEKO-TEX® STEP Level 3 certifications, completed the Clean by Design Energy & Water Management Program, and highlighted decarbonization efforts at the Cascale Annual Meeting.

ACKNOWLEDGEMENT

The Board extends its sincere appreciation to the Company's valued shareholders, customers, financial institutions, and regulators for their continued trust and support. The Board also acknowledges the dedication and hard work of the Company's management and employees. It is confident that this spirit of commitment and collaboration will continue to drive the Company forward in the years to come.

For and on behalf of the Board of Directors

Navid Fazil Jahan Zeb Khan Banth

(Chief Executive Officer) (Director)

Faisalabad February 04, 2026




3.5%	87,349	90,393
23.5%	17,087	21,107
70.3%	8,201	13,396
317.9%	1,443	6,032
297.8%	1,483	5,899
3.8%	19.6%	23.4%
4.8 %	1.7 %	6.5%

7.2%




4.1%	83,971	87,418
26.6%	16,284	20,618
70.3%	8,067	13,737
356.6%	1,373	6,268
4.2%	19.4%	23.6%
5.5%	1.6%	7.2%
356.6%	0.98	4. 47

100,000

80,000

87,418 83,971

Rs. in Million

60,000

40,000

20,000

20,618 16,284

13,737 8,067 6,268

1,373

0 Sales

Gross profit Profit from operations Net Profit

Half year ended December 31, 2025 Half year ended December 31, 2024

3.5%

8.9%

35.5%

UNCONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS

For The Quarter and Half Year Ended December 31, 2025

INDEPENDENT AUDITORS' REVIEW REPORT TO THE MEMBERS OF INTERLOOP LIMITED

REPORT ON REVIEW OF UNCONSOLIDATED CONDENSED INTERIM

FINANCIAL STATEMENTS

INTRODUCTION

We have reviewed the accompanying unconsolidated condensed interim statement of financial position of Interloop Limited ("the Company") as at December 31, 2025 and the related unconsolidated condensed interim statement of profit or loss, unconsolidated condensed interim statement of comprehensive income, unconsolidated condensed interim statement of changes in equity, unconsolidated condensed interim statement of cash flows, and notes to the unconsolidated condensed interim financial statements for the six-month period then ended (here-in-after referred to as the unconsolidated condensed interim financial statements). Management is responsible for the preparation and presentation of these unconsolidated condensed interim financial statements in accordance with accounting and reporting standards as applicable in Pakistan for interim financial reporting. Our responsibility is to express a conclusion on these financial statements based on our review.

The figures of the unconsolidated condensed interim statement of profit or loss and the unconsolidated condensed interim statement of comprehensive income for the quarters ended December 31, 2025 and 2024 have not been reviewed, as we are required to review only the cumulative figures for the half year ended December 31, 2025.

SCOPE OF REVIEW

We conducted our review in accordance with the International Standard on Review Engagements 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity". A review of interim financial statements consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

CONCLUSION

Based on our review, nothing has come to our attention that causes us to believe that the accompanying unconsolidated condensed interim financial statements are not prepared, in all material respects, in accordance with the approved accounting standards as applicable in Pakistan for interim financial reporting.

The engagement partner on the review resulting in this independent auditors' report is Khan Muhammad - FCA.

PLACE: FAISALABAD KRESTON HYDER BHIMJI & CO. DATE: February 04, 2026 CHARTERED ACCOUNTANTS UDIN: RR202510199bWCLNV894

UNCONSOLIDATED CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION

As at December 31, 2025

	Note	Un audited December 31, 2025 (Rupees in '000)	Audited June 30, 2025 (Rupees in '000)
ASSETS
NON CURRENT ASSETS
Property, plant and equipment	5	81,860,019	82,102,936
Intangible assets		458,874	485,395
Long term investment	6	1,727,763	1,727,763
Long term loans		203,378	198,075
Long term deposits		159,011	95,481
		84,409,045	84,609,650
CURRENT ASSETS
Stores and spares		3,901,110	3,476,263
Stock in trade		30,033,056	25,735,469
Trade debts	7	44,325,026	48,314,852
Loans and advances Deposit, prepayments and other receivables		2,638,201 346,785	1,897,224 296,554
Derivative financial instruments		1,026,547	-
Accrued income Refunds due from Government and statutory authorities		1,005 8,624,620	877 11,538,248
Short term investments		3,220,705	500,000
Cash and bank balances		85,163	357,519
		94,202,218	92,117,006
TOTAL ASSETS		178,611,263	176,726,656

	Note	Un audited December 31, 2025 (Rupees in '000)		Audited June 30, 2025 (Rupees in '000)
EQUITY AND LIABILITIES
SHARE CAPITAL AND RESERVES
Authorized share capital	8	50,000,000		50,000,000
Issued, subscribed and paid up share capital	9	14,017,095		14,017,095
Capital reserves		3,158,734		3,158,734
Revenue reserve - unappropriated profit		42,913,907		38,047,206
NON CURRENT LIABILITIES		60,089,736		55,223,035
Long term financing	10	23,679,271		28,593,987
Lease liabilities		148,158		166,688
Deferred liabilities		15,466,467		14,323,587
CURRENT LIABILITIES		39,293,896		43,084,262
Trade and other payables		18,022,692		15,033,780
Unclaimed dividend		3,052		3,112
Derivative financial instruments		-		13,056
Accrued mark up		631,347		1,022,132
Short term borrowings		58,652,261		59,829,892
Current portion of non current liabilities		1,918,279		2,517,387
		79,227,631		78,419,359
CONTINGENCIES AND COMMITMENTS 11		-	-
TOTAL EQUITY AND LIABILITIES		178,611,263	176,726,656

The annexed notes from 1 to 19 form an integral part of these unconsolidated condensed interim financial statements.

UNCONSOLIDATED CONDENSED INTERIM STATEMENT OF PROFIT OR LOSS

For The Quarter and Half Year Ended December 31, 2025

Quarter Ended Half Year Ended

Un audited Un audited Un audited Un audited December 31, December 31, December 31, December 31,

2025 2024 2025 2024

Sales - net		43,644,125 42,336,017 87,418,482 83,970,836
Cost of sales	12	(33,208,721) (33,810,028) (66,800,137) (67,686,520)

Note (Rupees in '000) (Rupees in '000)

Gross proffit	10,435,404	8,525,989	20,618,345	16,284,316
Operating expenses
Distribution costs	(1,173,162)	(1,654,426)	(2,705,940)	(3,485,185)
Administrative expenses	(2,489,279)	(2,371,181)	(5,037,415)	(4,624,586)
Other operating expenses	(290,098)	(326,531)	(851,207)	(556,697)
	(3,952,539)	(4,352,138)	(8,594,562)	(8,666,468)
Other income	1,013,194	172,616	1,712,944	449,594
Droffit from opgrations	7,496,059	4,346,467	13,736,727	8,067,442
Finance cost	(1,663,823)	(2,699,078)	(3,361,404)	(5,550,101)
Droffit bgforg lgvigs and income tax	5,832,236	1,647,389	10,375,323	2,517,341
Levies	-	(428,405)	-	(998,375)
Droffit bgforg incomg tax	5,832,236	1,218,984	10,375,323	1,518,966
Income tax	(2,361,259)	(68,645)	(4,106,913)	(146,349)
Droffit for thg pgriod	3,470,977	1,150,339	6,268,410	1,372,617
Earnings per share - basic and diluted (Rupees)	2.47	0.82	4.47	0.98

The annexed notes from 1 to 19 form an integral part of these unconsolidated condensed interim financial statements.

UNCONSOLIDATED CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME

For The Quarter and Half Year Ended December 31, 2025

Quarter Ended Half Year Ended

Un audited Un audited Un audited Un audited December 31, December 31, December 31, December 31,

2025 2024 2025 2024

(Rupees in '000) (Rupees in '000)

Droffit for thg pgriod	3,470,977	1,150,339	6,268,410	1,372,617
Other comprehensive income	-	-	-	-
Total comprehensive income for the period	3,470,977	1,150,339	6,268,410	1,372,617

The annexed notes from 1 to 19 form an integral part of these unconsolidated condensed interim financial statements.

UNCONSOLIDATED CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY

For The Half Year Ended December 31, 2025

Capital Revenue

Reserve Reserve

Share Share Unappropriated Total Capital Drgmium Droffit

(Rupees in '000)

Balance as at July 01, 2024 - Audited	14,017,095		3,158,734		36,356,646		53,532,475
Profit for the period Other comprehensive income for the period	- -		- -		1,372,617 -		1,372,617 -
Total comprehensive income for the period	-		-		1,372,617		1,372,617
Transactions with owners:
Final cash dividend @ Rs. 2.5 per share for the year ended June 30, 2024	-		-		(3,504,274)		(3,504,274)
Balance as at December 31, 2024 (Un-audited)	14,017,095		3,158,734		34,224,989		51,400,818
Balance as at July 01, 2025 - Audited	14,017,095		3,158,734		38,047,206		55,223,035
Profit for the period Other comprehensive income for the period	- -		- -		6,268,410 -		6,268,410 -
Total comprehensive income for the period	-		-		6,268,410		6,268,410
Transactions with owners:
Final cash dividend @ Re. 1 per share
for the year ended June 30, 2025 -		-		(1,401,709)		(1,401,709)
Balance as at December 31, 2025 (Un-audited)	14,017,095	3,158,734		42,913,907		60,089,736

The annexed notes from 1 to 19 form an integral part of these unconsolidated condensed interim financial statements.

UNCONSOLIDATED CONDENSED INTERIM STATEMENT OF CASH FLOWS

For The Half Year Ended December 31, 2025

Un audited Un audited

December 31, December 31,

2025 2024

(Rupees in '000) (Rupees in '000)

a) CASH FLOWS FROM OPERATING ACTIVITIES

Droffit bgforg lgvigs and incomg tax 10,375,323 2,517,341

Adjustments for:

Depreciation on operating fixed assets 3,743,315 3,133,805

Depreciation on right of use assets 49,548 52,109

Amortization of intangible assets 37,789 36,411

Workers' profit participation fund 557,211 129,278

Workers' welfare fund 212,109 51,374

Staff retirement gratuity 1,982,272 1,798,596

Loss on disposal of non current assets 10,355 132,158

Exchange (gain)/loss - net (13,873) 816

Provision for obsolete inventory 54,275 197,248 Unrealized gain on derivative financial instruments (1,026,547) (180,681) Realized gain on derivative financial instruments (639,628) (218,441) Unrealized gain on investment in mutual funds (705) -Profit on investments in TFCs (32,066) (50,110)

Finance cost 3,361,404 5,550,101

Opgratinb cash flows bgforg workinb capital chanbgs 18,670,782 13,150,005

Chanbgs in workinb capital

(247,566)

(5,865,080)

(6,879,253)

(1,565,882)

(24,829)

(3,056,612)

169,931

(424,847)

(4,351,862)

3,989,826

(725,840)

(50,231)

1,419,590

(2,720,000)

2,798,108

(Increase) / decrease in current assets

Stores and spares Stock in trade Trade debts

Loans and advances

Deposit, prepayments and other receivables Refunds due from Government and statutory authorities Short term investment in mutual funds - net

Increase in current liabilities

Trade and other payables

(65,256) (17,469,291)

Cash generated from/(used in) operations 18,605,526 (4,319,286) Finance cost paid (3,720,560) (7,149,154)

Income tax paid (2,637,087) (1,922,043)

Staff retirement gratuity paid (803,319) (386,698)

Workers' profit participation fund paid (502,403) (975,837)

Workers' welfare fund paid (90,000) -

Long term loans paid (20,440) (62,893)

Changes in long term deposits (63,530) (11,440) Settlement of derivative financial instruments 639,628 218,441 Exchange gain - net 817 58,432

Net cash generated from/(used in) operating activities 11,408,632 (14,550,478)

		Un audited December 31,	Un audited December 31,
		2025 (Rupees in '000)	2024 (Rupees in '000)
b) CASH FLOWS FROM INVESTING ACTIVITIES
Additions in: Property, plant and equipment		(3,678,826)	(9,510,866)
Intangible assets		(11,268)	(29,242)
Proceeds from disposal of non current assets		159,620	160,616
Profit received from investments in TFCs		31,938	50,474
Net cash used in investing activities		(3,498,536)	(9,329,018)
c) CASH FLOWS FROM FINANCING ACTIVITIES
Long term financing obtained		573,008	9,045,034
Repayment of long term financing		(6,113,605)	(1,328,142)
Payment of lease rentals		(62,455)	(67,154)
Short term borrowings - net		(1,177,631)	19,704,677
Dividend paid		(1,401,769)	(3,503,895)
Net cash (used in)/generated from ffinancinb activitigs		(8,182,452)	23,850,520
Net decrease in cash and cash equivalents	(a+b+c)	(272,356)	(28,976)
Cash and cash equivalents at beginning
of the period		357,519	370,386
Cash and cash equivalents at end of the period		85,163	341,410

The annexed notes from 1 to 19 form an integral part of these unconsolidated condensed interim financial statements.

NOTES TO THE UNCONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS

For The Half Year Ended December 31, 2025

LEGAL STATUS AND OPERATIONS
Interloop Limited (the Company) was incorporated in Pakistan on April 25, 1992 and publicly listed on Pakistan Stock Exchange on April 5, 2019. The registered office of the Company is situated at 15-A, Peoples Colony No. 1, Faisalabad, Pakistan. The manufacturing facilities are located at 1-km, 6-km, 7-km Jaranwala Road, Khurrianwala, Faisalabad and 8-km Manga Mandi, Raiwand Road, Lahore. The Company is a vertically integrated multi-category Full Family Clothing, manufacturing Hosiery, Denim, Knitted Apparel and Seamless Active wear, for top international brands and retailers, besides producing yarns for a range of textile customers. The Company's commitment to environmental, social responsibility & governance (ESG) is deeply rooted in its mission and has gained it global recognition as a pioneer in responsible manufacturing. The Company's diverse & engaged workforce and operational excellence has established it as a Partner of Choice for its customers.
BASIS OF PREPARATION
These unconsolidated condensed interim financial statements have been prepared in accordance with the accounting and reporting standards as applicable in Pakistan for interim financial reporting. The accounting and reporting standards as applicable in Pakistan for interim financial reporting comprise of:
- International Accounting Standard ('IAS') 34, 'Interim Financial Reporting', issued by International Accounting Standards Board ('IASB') as notified under the Companies Act, 2017, and
- Provisions of and directives issued under the Companies Act, 2017.
  Where provisions of and directives issued under the Companies Act, 2017 differ with the requirements of IAS 34, the provisions of and directives issued under the Companies Act, 2017 have been followed.
  These unconsolidated condensed interim financial statements have been subjected to limited scope review by the auditors, as required under section 237 of Companies Act, 2017. These unconsolidated condensed interim financial statements do not include all the information as required in annual financial statements prepared in accordance with approved accounting standards as applicable in Pakistan, and should therefore be read in conjunction with the financial statements for the year ended June 30, 2025.
CRITICAL ACCOUNTING ESTIMATES AND JUDGMENTS
The preparation of unconsolidated condensed interim financial statements requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of
assets and liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgments about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates.
In preparing these unconsolidated condensed interim financial statements, the significant judgments made by the management in applying accounting policies and the key sources of estimates were the same as those applied to the annual financial statements of the Company for the year ended June 30, 2025.
MATERIAL ACCOUNTING POLICY INFORMATION

The material accounting policies and the methods of computation adopted in the preparation of these unconsolidated condensed interim financial statements are the same as those applied in the preparation of annual financial statements of the Company for the year ended June 30, 2025.

	Note	Un audited December 31, 2025 (Rupees in '000)	Audited June 30, 2025 (Rupees in '000)
5. PROPERTY, PLANT AND EQUIPMENT
Operating fixed assets	5.1	73,664,155	72,704,304
Capital work in progress	5.2	7,998,428	9,193,409
Right of use assets		197,436	205,223
		81,860,019	82,102,936
5.1 Opgratinb ffixgd assgts
Cost
Opening balance		103,478,718	70,984,360
Additions during the period/year	5.1.1	4,873,807	33,341,979
Disposals during the period/year		(364,679)	(847,621)
Closing balance		107,987,846	103,478,718
Accumulated depreciation
Opening balance		30,774,414	24,373,459
Depreciation for the period/year		3,743,315	6,838,364
Adjustment during the period/year		(194,038)	(437,409)
Closing balance		34,323,691	30,774,414
Written down value		73,664,155	72,704,304

	Note	Un audited December 31, 2025 (Rupees in '000)	Audited June 30, 2025 (Rupees in '000)
5.1.1 Additions during the period/year
Freehold land		17,522	869,341
Buildings on freehold land		451,850	5,601,379
Buildings on leasehold land		-	4,692
Plant and machinery		2,601,372	19,693,525
Tools and equipment		339,528	1,747,444
Office equipment		198,808	752,343
Electric installations		772,230	2,790,561
Furniture and fixtures		134,824	968,754
Vehicles		357,673	913,940
		4,873,807	33,341,979
5.2 Capital work in probrgss
Civil works		2,379,704	1,952,364
Plant and machinery		3,519,305	4,994,429
Capital stores	5.2.1	1,369,163	1,467,218
Advances to suppliers		730,256	779,398
		7,998,428	9,193,409

5.2.1 Capital stores include factory tools and equipment, office equipment, electric installations and furniture and fixtures that are held in store for future use and capitalization.

Un audited Audited

December 31, June 30,

2025 2025

Note (Rupees in '000) (Rupees in '000)

LONG TERM INVESTMENT
Unquoted equity - at cost Subsidiary company
Top Circle Hosiery Mills Co., Inc. 6.1 1,727,763 1,727,763
1. This represents investment in 640 fully paid ordinary shares of $ 1 each of Top Circle Hosiery Mills Co., Inc., which is incorporated under the laws of the United States of America. This investment represents 64% of issued subscribed and paid up capital of Top Circle Hosiery Mills Co., Inc.
  Un audited Audited
  December 31, June 30,
  2025 2025
  Note (Rupees in '000) (Rupees in '000)
TRADE DEBTS
Foreign
- Secured
- Unsecured 7.1
Local
13,075,764
29,773,584

13,475,660

33,156,592

42,849,348 46,632,252

- Unsecured 7.1 1,475,678 1,682,600

44,325,026 48,314,852

1. Management considers that these debts are good and will be recovered in due course.

AUTHORIZED SHARE CAPITAL

Un audited	Audited	Un audited	Audited
December 31,	June 30,	December 31,	June 30,
2025	2025	2025	2025

[Number of shares in '000] (Rupees in '000)

5,000,000 5,000,000 Ordinary shares of Rs. 10 each 50,000,000 50,000,000

ISSUED, SUBSCRIBED AND PAID UP SHARE CAPITAL

Un audited Audited Un audited Audited

December 31, June 30, December 31, June 30,

2025 2025 2025 2025

[Number of shares in '000] (Rupees in '000)

132,429

1,269,281

132,429

1,269,281

Ordinary shares of Rs. 10 each fully paid in cash

Ordinary shares of Rs. 10 each

issued as fully paid bonus shares

1,324,289

12,692,806

1,324,289

12,692,806

1,401,710

14,017,095

Un audited Audited

December 31, June 30,

2025 2025

(Rupees in '000) (Rupees in '000)

10.	LONG TERM FINANCING
	From ffinancial institutions - sgcurgd
	Opening balance	31,005,452		18,917,361
	Add: Obtained during the period/year	573,008		16,332,285
	Less: Paid during the period/year Less: Effect of adjustment of Government grant	(6,113,605) 14,079		(4,275,343) 31,149
		25,478,934	31,005,452
Less: Current portion of long term financing		(1,799,663)	(2,411,465)
		23,679,271	28,593,987

CONTINGENCIES AND COMMITMENTS
1. Contingencies
  1. The Punjab Revenue Authority (PRA) raised a demand of Rs. 60.720 million against the Company for the alleged default in withholding provincial sales tax on various transport services obtained during the period March 01, 2015 to May 31, 2016. The demand, comprising principal tax, default surcharge, and penalty, was raised under the provisions of the Punjab Sales Tax on Services Act, 2012 through Order No. ENF-Unit-1/32/2018 dated March 15, 2018. Aggrieved by the order, the Company filed an appeal before the Commissioner (Appeals), PRA, who through Appellate Order No. 175/2018 partially allowed the appeal by deleting amount of Rs. 36.753 million, while upholding a balance demand of Rs. 23.967 million. The Company further contested the matter before the Honourable Appellate Tribunal PRA, which, through Order No. 85/2018 dated February 21, 2019, set aside the earlier decision and remanded the case back to the assessing officer for fresh examination.
    In the second round of litigation, the Commissioner PRA, through Order-in-Original No. 16/2019 dated July 16, 2019, revised the demand to Rs. 13.195 million. The Company once again appealed before the Honourable Appellate Tribunal, which through Order-in-Appeal No. 99/2019 dated October 22, 2019, again remanded the matter back to the Additional Commissioner Enforcement - I for denovo consideration. Meanwhile, the department initiated coercive recovery measures and forcibly recovered Rs. 15.317 million by attaching the Company's bank account. In response, the Company filed a writ petition before the Honourable Lahore High Court, Lahore, which directed the concerned Commissioner PRA to review the matter and either refund the amount recovered or appropriately adjust it against any lawful tax liability.
    However, in compliance with the aforementioned Order dated October 22, 2019 of the Honourable Appellate Tribunal, a third round of litigation was initiated, resulting in the creation of an alleged tax demand of Rs. 45.248 million. After adjusting the previously recovered amount of Rs. 15.317 million, a net demand of Rs. 29.931 million was raised through Order-in-Original No. 109/2020 dated June 30, 2020. The Company filed an appeal before the Commissioner (Appeals), PRA, who, through Appeal No. 203/2020 dated November 28, 2023, upheld the order of the assessing authority in its entirety. Consequently, the Company has preferred a further appeal before the Honourable Appellate Tribunal PRA, where the matter is currently pending adjudication.
    The Company has not made any provision against the above demand as the management is confident that the ultimate outcome of the appeal would be in favor of the Company, inter alia on the basis of the advice of the tax consultant and relevant law and facts.
  2. Bank guarantees issued by various banks on behalf of the Company in favour

	of:
		Un audited December 31, 2025 (Rupees in '000)	Audited June 30, 2025 (Rupees in '000)
Sui Northern Gas Pipelines limited against supply of gas		1,731,380	1,731,380
The Director, Excise and Taxation, Karachi against imposition of infrastructure cess		1,612,353	1,462,353
Faisalabad Electric Supply Company (FESCO) against supply of electricity		154,425	154,425
Lahore Electric Supply Company (LESCO)
	against supply of electricity	7,370	7,370
	Punjab Revenue Authority	11,533	11,533
	Total Parco Pakistan Limited	6,000	6,000
		3,523,061	3,373,061
11.1.3	Post dated cheques issued in favour of custom
authorities for release of imported goods. 7,188,096			7,878,158
11.2	Commitments
	Under letters of credit for: Capital expenditure	1,607,954	2,972,579
	Raw materials	1,923,859	622,930
	Stores and spares	116,602	207,293
		3,648,415	3,802,802

Quarter Ended Half Year Ended

Un audited Un audited Un audited Un audited December 31, December 31, December 31, December 31,

2025 2024 2025 2024

(Rupees in '000) (Rupees in '000)

12. COST OF SALES
Raw material consumed	18,661,575	19,728,590	37,514,051	40,518,064
Stores and spares consumed Knitting, processing and packing charges	937,138 512,278	981,134 1,406,210	1,861,196 1,390,868	1,942,109 3,408,345
Salaries, wages and benefits	8,326,099	7,322,981	16,424,616	14,573,096
Staff retirement gratuity	867,208	793,494	1,734,359	1,572,914
Fuel and power	2,395,108	2,316,206	5,220,711	5,137,026
Repairs and maintenance	170,024	245,307	396,017	413,087
Insurance Depreciation on operating fixed assets	53,097 1,646,709	55,369 1,479,024	104,232 3,257,790	107,669 2,730,281
Depreciation on right of use assets	23,285	24,770	49,548	49,499
Amortization of intangible assets	85	107	170	213
Rent, rate and taxes	10,178	10,268	29,584	20,583
Other manufacturing costs	91,777	100,580	212,697	159,480
Work in procgss	33,694,561	34,464,040	68,195,839	70,632,366
Opening balance	5,406,478	4,815,630	5,012,176	4,466,813
Closing balance	(5,809,212)	(4,578,557)	(5,809,212)	(4,578,557)
	(402,734)	237,073	(797,036)	(111,744)
Cost of goods manufactured	33,291,827	34,701,113	67,398,803	70,520,622
Finished goods
Opening balance	8,862,510	9,211,866	8,346,950	7,268,849
Closing balance	(8,945,616)	(10,102,951)	(8,945,616)	(10,102,951)
	(83,106)	(891,085)	(598,666)	(2,834,102)
	33,208,721	33,810,028	66,800,137	67,686,520

13. TRANSACTIONS WITH RELATED PARTIES

Related parties include subsidiaries, associated companies and undertakings, entities under common directorship, directors, major shareholders, key management personnel, employees benefit trust and post employment benefit plans. The Company in the normal course of business carries out transactions with various related parties. Detail of transactions with related parties during the period are as follows:

Half Year Ended

Name	Nature of transaction	Un audited December 31,	Un audited December 31,
		2025	2024
	(R	upees in '000)	(Rupees in '000)
Interloop Holdings (Pvt) Limited - Associate Services received		212,658	290,785
	Gratuity transferred	2,607	-
Texlan Center (Pvt) Limited - Associate	Sale of yarn	693,251	1,108,450
	Sale of packing material	37,269	22,963
	Purchase of assets Services received	-213,027	13,908 -
Momentum Logistics (Pvt) Limited - Associate	Services received	762,554	793,498
PrintKraft (Pvt) Limited - Associate	Purchase of packing material	159,646	327,265
Interloop Europe - Associate	Sale of socks	105,147	284,984
Octans Digital (Pvt) Limited - Associate	Services received	11,153	20,136
	Purchase of asset	4,900	-
Socks & Socks (Dvt) Limitgd - Associatg	Sale/(purchase) of goods - net	(9,155)	187,252
	Services received	64,020	91,898
Interloop Employees Provident Fund - Trustee	Contributions to the fund	72,240	67,547
Interloop Welfare Trust - Trustee	Donations paid	-	20,000
Lyallpur Literary Council - Trustee	Donation paid	-	3,000
ILNA Inc USA - Associate	Services received	664,448	780,453
Zhejiang Top Circle Textiles Co., Ltd - Subsidiary	Services received	573,653	1,741,446
Pinghu Top Circle Knitting Co., Ltd - Subsidiary of Subsidiary	Services received	94	-
Abacus Consulting Technology (Pvt) Limited - Associate	Services received	-	3,276
Key management personnel and
other related parties	Sale of assets	18,303	1,108
	Remuneration and other benefits	3,543,626	3,572,715
	Rent expenses	439	942
	Repayment of housing finance loan	-	1,154
	Markup on housing finance loan	-	52
	Dividend paid	1,036,602	2,955,774
	Directorship fee	14,350	12,414

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