Interloop Limited

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
ڈائ� صحن ک جئہ رپرٹ	11
Unconsolidated Condensed Interim Financial Statements
Unconsolidated Condensed Interim Statement of Financial Position	14
Unconsolidated Condensed Interim Statement of Proft 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
Consolidated Condensed Interim Statement of Financial Position	36
Consolidated Condensed Interim Statement of Proft or Loss	38
Consolidated Condensed Interim Statement of Comprehensive Income	39
Consolidated Condensed Interim Statement of Changes in Equity	40
Consolidated Condensed Interim Statement of Cash Flows	41
Notes to the Consolidated Condensed Interim Financial Statements	43

1[st] Quarter Report 01

BOARD OF DIRECTORS

Musadaq Zulqarnain Chairperson / Non-Executive Director

Navid Fazil Chief Executive Officer / Executive Director

Muhammad Maqsood Executive Director / Group CFO

Faryal Sadiq Member

Jahan Zeb Khan Banth Member

NOMINATION COMMITTEE

Musadaq Zulqarnain Chairperson

Farwa Hasnain Independent Director

Navid Fazil Member

Fatima Asad Khan Independent Director

Muhammad Maqsood Member

Romana Abdullah Independent Director

Tariq Iqbal Khan Independent Director

Faryal Sadiq Executive Director

RISK MANAGEMENT COMMITTEE

Tariq Iqbal Khan Chairperson

Muhamm ad Maqsood Member

Jahan Zeb Khan Banth Non-Executive Director

Fatima Asad Khan Member

AUDIT COMMITTEE

Tariq Iqbal Chairperson

Farwa Hasnain Member

Romana Abdullah Member

Jahan Zeb Khan Banth Member

HUMAN RESOURCE & REMUNERATION COMMITTEE

Fatima Asad Khan

Romana Abdullah Member

ENVIRONMENTAL, SOCIAL & GOVERNANCE COMMITTEE

Navid Fazil Chairperson

Farwa Hasnain Member

Faryal Sadiq Member

CHIEF FINANCIAL OFFICER Muhammad Maqsood

Chairperson

Navid Fazil Member

Farwa Hasnain Member

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-eIqbal, 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

REGISTERED OFFICE

15-A, Peoples Colony No. 1, Faisalabad, Pakistan Phone: (92-41) 4360400 Fax: (92-41) 2428704 Email: [email protected] Website: www.interloop-pk.com

PLANT LOCATIONS

Hosiery Plant 1 & Corporate Office

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.

E- COMMUNICATION

Website: www.interloop-pk.com

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

1[st] Quarter Report

DIRECTORS’ REVIEW REPORT For The Quarter Ended September 30, 2025

“The Board of Directors of Interloop Limited (Interloop or the Company) is pleased to present the Directors’ review report along with the unaudited financial results of the Company for the three months ended on September 30, 2025.”

ECONOMIC AND INDUSTRIAL REVIEW

The global economy remains resilient but is showing signs of slowing. The IMF projects global real GDP growth at 3.2 percent in 2025, down from 2024, and further easing to 3.1 percent in 2026. This deceleration reflects ongoing geopolitical tensions, rising protectionism, tight financial conditions, and continued global supply chain disruptions exacerbated by U.S. tariffs.

In Pakistan, economic activity during the first quarter of FY2026 was significantly affected by catastrophic floods, which disrupted agricultural production and heightened inflationary pressures. In light of these challenges, the IMF revised Pakistan’s GDP growth forecast downward to 3.7 percent from the earlier target of 4.2 percent. Responding to this uncertain macroeconomic environment, the State Bank of Pakistan adopted a cautious approach, maintaining the policy rate at 11 percent throughout the quarter.

On the external front, the trade deficit expanded by 9.4 percent year-on-year to USD 8.5 billion. This was driven by 8.8 percent increase in imports, which rose to USD 18.5 billion, while exports increased by 8.2 percent to USD 10.1 billion. Despite this widening gap, workers’ remittances offered some relief, increasing by 8.4 percent year-on-year to USD 9.5 billion. These inflows played a key role in supporting the current account and contributed to a modest appreciation of the Pakistani rupee, which strengthened by nearly 1 percent from its June 2025 level.

The textile and apparel sector remained steady within the economy during the quarter. Textile exports increased by 5.6 percent year-on-year, reaching USD 4.8 billion compared to USD 4.5 billion in the same period last year. Within the sector, knitwear led the growth with a 12.2 percent increase to USD 1.4 billion, followed by readymade garments at USD 1.1 billion (up 6.1 percent) and bedwear at USD 0.9 billion (up 7.3 percent).

UNCONSOLIDATED FINANCIAL AND OPERATIONAL PERFORMANCE

The Company sustained its growth momentum during the first quarter of FY2026, recording a 5.14 percent increase in revenue, reaching Rs. 43,774 million compared to Rs. 41,635 million in Q1FY2025. Gross profit rose significantly by 31.25 percent to Rs. 10,183 million, up from Rs. 7,758 million in the corresponding period last year, primarily driven by a favorable sales mix, effective cost management and improved utilization.

Profit from operations grew impressively by 67.72 percent to Rs. 6,241 million, reflecting controlled operating expenses and higher productivity. Financial costs declined sharply by 41 percent owing to a significant reduction in borrowings. Consequently, profit after taxation surged to Rs. 2,797 million compared to Rs. 222 million in Q1FY2025. Earnings per share improved to Rs. 2.00 from Rs. 0.16 in the same period last year.

Amid external challenges, the Management remains committed to cost optimization, enhancing operational efficiency, and conducting strategic review of the customer portfolio to sustain profitability. The summarized unaudited financial results for the three months ended September 30, 2025, compared to the same period in 2024, are as follows:

	Three months ended September 30	Three months ended September 30
	2025	2024	Variance
	Rs. in million		%
Net Sales	43,774	41,635	5.14%
Gross Proft	10,183	7,758	31.25%
Proft from Operations	6,241	3,721	67.72%
Net Proft	2,797	222	1,158.53%
Gross Proft Ratio	23.26%	18.63%	4.63%
Net Proft Ratio	6.39%	0.53%	5.86%
Earningsper Share - Basic and Diluted (Rupees)	2.00	0.16	1,158.53%

Rs. in million

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50,000
43,774
41,635
40,000
30,000
20,000
10,000 10,183 7,758 6,241
3,721 2,797
222
0
Sales Gross profit Profit from operations Net Profit
Three months ended September 30, 2025 Three months ended September 30, 2024
----- End of picture text -----

CONSOLIDATED FINANCIAL REVIEW

The Q1FY2026 marked a period of solid performance for the Group, reflecting resilience, operational efficiency, and improved profitability. The Group recorded net sales of Rs. 45,202 million, reflecting a year-on-year growth of 5.7 percent compared to Rs. 42,746 million in Q1FY2025. The Group’s profitability improved significantly, resulting in a rise of 29 percent in gross profit to Rs. 10,520 million from Rs. 8,140 million in Q1FY2025. Net profit after tax surged to Rs. 2,742 million, representing a substantial increase of 720 percent over Rs. 334 million recorded in Q1FY2025. Earnings per share also improved markedly to

1[st] Quarter Report

Rs. 1.96, compared to Rs. 0.24 in the same period last year. This strong performance is primarily attributable to enhanced operating margins, efficient cost control, and improved utilization of the apparel project, reflecting the Group’s focus on operational excellence and sustainable growth.

The summarized consolidated financial results for the three months ended September 30, 2025, as against September 30, 2024, are as follows:

	Three months ended September 30	Three months ended September 30
	2025	2024	Variance
	Rs. in million		%
Net Sales	45,202	42,746	5.7%
Gross Proft	10,520	8,140	29.2%
Proft from Operations	6,237	3,844	62.3%
Net Proft	2,742	334	720%
Gross Proft Ratio	23.3%	19.0%	4.3%
Net Proft Ratio	6.1%	0.8%	5.3%
Earningsper Share - Basic and Diluted (Rupees)	1.96	0.24	720%

BUSINESS OUTLOOK AND CHALLENGES

The upcoming quarters remain cautious amid a challenging global and domestic environment. Internationally, supply chain disruptions are expected to persist due to ongoing geopolitical tensions, elevated shipping costs, and trade restrictions, while global demand continues to soften particularly from key markets such as the US and EU.

Domestically, the aftereffects of recent floods are likely to weigh on agricultural output. Inflationary pressures may persist due to higher food and energy prices, although some moderation is anticipated if supply chains gradually stabilize. Meanwhile, Pakistan has reached a staff-level agreement with the International Monetary Fund (IMF), which will unlock further external financing, support macroeconomic stability, and guide inflation expectations in the medium term.

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 remains committed to delivering sustainable, high-quality products while creating long-term value for its customers, shareholders, and broader stakeholders.

Looking ahead, the Company remains committed to advancing its sustainability agenda through responsible business practices and long-term environmental stewardship. Interloop continues to strengthen its sustainable initiatives, focusing on renewable energy, green buildings, and sustainable finance. On the sustainability front, the Company has obtained BCI certification across all units for traceable and sustainable cotton sourcing and showcased its progress in these areas at the Cascale Annual Meeting 2025, reaffirming its dedication to creating a more resilient and eco-conscious value chain.

ACKNOWLEDGEMENT

The Board of Directors places on record its sincere appreciation for the continued trust and support extended by our valued shareholders, customers, and suppliers. We also acknowledge the dedication and hard work of our employees at all levels, whose professionalism and perseverance have been instrumental in sustaining the Company’s growth and performance. The Board is grateful for the guidance and cooperation received from regulators, financial institutions, and all other stakeholders, and looks forward to their continued support in the years ahead.

For and on behalf of the Board of Directors

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Navid Fazil (Chief Executive Officer) Faisalabad October 27, 2025

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Jahan Zeb Khan Banth (Director)

1[st] Quarter Report

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1[st] Quarter Report 09

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Rs. in million

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1[st] Quarter Report 11

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UNCONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS For The Quarter Ended September 30, 2025

UNCONSOLIDATED CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION As at September 30, 2025

		Un audited	Audited
		September 30,	June 30,
		2025	2025
	Note	(Rupees in ‘000)	(Rupees in ‘000)
ASSETS
NON CURRENT ASSETS
Property, plant and equipment	5	81,876,321	82,102,936
Intangible assets		483,112	485,395
Long term investments		1,727,763	1,727,763
Long term loans		177,063	198,075
Long term deposits		91,311	95,481
		84,355,570	84,609,650
CURRENT ASSETS
Stores and spares		3,755,431	3,476,263
Stock in trade		26,506,437	25,735,469
Trade debts	6	44,160,680	48,314,852
Loans and advances		3,095,991	1,897,224
Deposit, prepayments and other
receivables		472,372	296,554
Derivative fnancial instruments		648,505	–
Accrued income		868	877
Refunds due from Government and
statutory authorities		10,566,995	11,538,248
Short term investments		500,000	500,000
Cash and bank balances		360,234	357,519
		90,067,513	92,117,006
TOTAL ASSETS		174,423,083	176,726,656

		Un audited	Audited
		September 30,	June 30,
		2025	2025
	Note	(Rupees in ‘000)	(Rupees in ‘000)
EQUITY AND LIABILITIES
SHARE CAPITAL AND RESERVES
Authorized share capital	7	50,000,000	50,000,000
Issued, subscribed and paid up capital	8	14,017,095	14,017,095
Reserves		3,158,734	3,158,734
Unappropriated proft		40,844,639	38,047,206
		58,020,468	55,223,035
NON CURRENT LIABILITIES
Long term fnancing	9	23,712,781	28,593,987
Lease liabilities		172,436	166,688
Deferred liabilities		14,868,857	14,323,587
		38,754,074	43,084,262
CURRENT LIABILITIES
Trade and other payables		17,508,574	15,033,780
Unclaimed dividend		2,920	3,112
Derivative fnancial instruments		–	13,056
Accrued mark up		1,534,624	1,022,132
Short term borrowings		56,835,923	59,829,892
Current portion of non current liabilities		1,766,500	2,517,387
		77,648,541	78,419,359
CONTINGENCIES AND COMMITMENTS	10	–	–
TOTAL EQUITY AND LIABILITIES		174,423,083	176,726,656

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

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Chief Executive Officer

Chief Financial Officer

Director

1[st] Quarter Report

UNCONSOLIDATED CONDENSED INTERIM STATEMENT OF PROFIT OR LOSS For The Quarter Ended September 30, 2025

Note	Quarter ended
	Un audited Un audited September 30, September 30, 2025 2024 (Rupees in ‘000) (Rupees in ‘000)
Net sales Cost of sales 11	43,774,357 41,634,819 (33,591,416) (33,876,492)
Gross proft Distribution cost Administrative expenses Other operating expenses Other income	10,182,941 7,758,327 (1,532,778) (1,830,759) (2,548,136) (2,253,405) (561,109) (230,166) 699,750 276,978 (3,942,273) (4,037,352)
Proft from operations Finance cost	6,240,668 3,720,975 (1,697,581) (2,851,023)
Proft before income tax and levies Levies	4,543,087 869,952 – (569,970)
Proft before income tax Income tax	4,543,087 299,982 (1,745,654) (77,704)
Proft for the period	2,797,433 222,278
Earnings per share – basic and diluted (Rupees)	2.00 0.16

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

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Chief Executive Officer

Chief Financial Officer

Director

UNCONSOLIDATED CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME For The Quarter Ended September 30, 2025

	Quarter ended
	Un audited Un audited September 30, September 30, 2025 2024 (Rupees in ‘000) (Rupees in ‘000)
Proft for the period Other comprehensive income: Items that will not be reclassifed subsequently to proft or loss: Items that may be reclassifed subsequently to proft or loss:	2,797,433 222,278 – – – –
Total comprehensive income for the period	2,797,433 222,278

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

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Chief Executive Officer

Chief Financial Officer 1[st] Quarter Report 17

Director

UNCONSOLIDATED CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY For The Quarter Ended September 30, 2025

	Share Capital	Capital Revenue Reserve Reserve Share Unappropriated Total Premium Proft
		(Rupees in ‘000)
Balance as at July 01, 2024 – audited Proft for the period Other comprehensive income Total comprehensive income for the period	14,017,095	3,158,734 36,356,646 53,532,475 – 222,278 222,278 – – – – 222,278 222,278
	– –	– –
	–
Balance as at September 30, 2024 (un–audited)	14,017,095	3,158,734 36,578,924 53,754,753
Balance as at July 01, 2025 – audited Proft for the period Other comprehensive income Total comprehensive income for the period	14,017,095	3,158,734 38,047,206 55,223,035 – 2,797,433 2,797,433 – – – – 2,797,433 2,797,433
	– –	– –
	–
Balance as at September 30, 2025 (un–audited)	14,017,095	3,158,734 40,844,639 58,020,468

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

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Chief Executive Officer

Chief Financial Officer

Director

UNCONSOLIDATED CONDENSED INTERIM STATEMENT OF CASH FLOWS For The Quarter Ended September 30, 2025

		Un audited	Un audited
		September 30,	September 30,
		2025	2024
		(Rupees in ‘000)	(Rupees in ‘000)
A)	CASH FLOWS FROM OPERATING ACTIVITIES
	Proft before income tax and levies	4,543,087	869,952
	Adjustments for:
	Depreciation on operating fxed assets	1,846,660	1,424,077
	Depreciation on right of use assets	26,263	26,281
	Amortization of intangible assets	18,743	16,473
	Workers’ proft participation fund	244,055	44,130
	Workers’ welfare fund	93,686	33,383
	Staff retirement gratuity	991,108	891,287
	Loss on disposal of non current assets	11,687	41,242
	Realized gain on derivative fnancial instruments	(14,867)	(105,694)
	Unrealized gain on derivative fnancial instruments	(661,561)	(143,136)
	Loss on disposal of intangible assets	–	5,326
	Provision for obsolete inventory	80,530	91,772
	Proft on term fnance certifcates TFCs	(16,135)	(27,288)
	Finance cost	1,697,581	2,851,023
	Operating cash fows before working
	capital changes	8,860,837	6,018,828
	Changes in working capital
	(Increase)/decrease in current assets
	Stores and spares	(279,168)	(9,979)
	Stock in trade	(851,498)	(2,044,280)
	Trade debts	4,154,172	(1,751,080)
	Loans and advances	(1,202,408)	(821,634)
	Deposit, prepayments and other receivables	(175,818)	(68,826)
	Refunds due from Government and
	statutory authorities	458,593	(1,202,819)
	Increase in current liabilities
	Trade and other payables	2,656,398	665,316
		4,760,271	(5,233,302)
	Cash generated from operations	13,621,108	785,526
	Finance cost paid	(1,162,505)	(3,598,808)
	Income tax paid	(1,275,831)	(1,151,487)
	Staff retirement gratuity paid	(396,928)	(179,466)
	Workers’ proft participation fund paid	(502,403)	(975,816)
	Workers’ welfare fund paid	(30,000)	–
	Long term loans received/(paid)	24,653	(25,380)
	Settlement of derivative fnancial instruments	14,867	105,694
	Long term deposits received	4,170	–
	Net cash generated from / (used in)
	operating activities	10,297,131	(5,039,737)

1[st] Quarter Report

			Un audited	Un audited
			September 30,	September 30,
			2025	2024
			(Rupees in ‘000)	(Rupees in ‘000)
B)	CASH FLOWS FROM INVESTING ACTIVITIES
	Additions in:
	Property, plant and equipment		(1,704,987)	(5,157,080)
	Intangible asset		(16,460)	(37,040)
	Proceeds from disposal of non current assets		88,087	71,194
	Proft on term fnance certifcates (TFCs)	received	16,144	27,524
	Net cash used in investing activities		(1,617,216)	(5,095,402)
C)	CASH FLOWS FROM FINANCING ACTIVITIES
	Repayment of long term fnancing – net		(5,650,621)	(648,927)
	Payment of lease rentals		(32,418)	(33,378)
	Changes in short term borrowings – net		(2,993,969)	10,845,618
	Dividend paid		(192)	(159)
	Net cash (used in) / generated from fnancing activities		(8,677,200)	10,163,154
	Net increase in cash and cash
	equivalents	(A+B+C)	2,715	28,015
	Cash and cash equivalents at the
	beginning of the period		357,519	370,386
	Cash and cash equivalents at the end
	of the period		360,234	398,401

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

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Chief Executive Officer

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Director

NOTES TO THE UNCONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS For The Quarter Ended September 30, 2025

1. 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.

2. 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:

i) International Accounting Standard (‘IAS’) 34, ‘Interim Financial Reporting’, issued by International Accounting Standards Board (‘IASB’) as notified under the Companies Act, 2017, and
ii) 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 do not include all of the information required for full annual financial statements and should be read in conjunction with the financial statements for the year ended June 30, 2025.

3. 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.

4. MATERIAL ACCOUNTING POLICY INFORMATION

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

1[st] Quarter Report

			Un audited	Audited
			September 30,	June 30,
			2025	2025
		Note	(Rupees in ‘000)	(Rupees in ‘000)
5.	PROPERTY, PLANT AND EQUIPMENT
	Operating fxed assets	5.1	72,980,967	72,704,304
	Capital work in progress	5.2	8,674,632	9,193,409
	Right of use assets		220,722	205,223
			81,876,321	82,102,936
5.1	Operating fxed assets
	Opening written down value		72,704,304	46,610,901
	Add: Additions during the period/year	5.1.1	2,223,763	33,341,979
	Less: Disposals during the period/year		(100,440)	(410,212)
	Less: Depreciation charged during
	the period/year		(1,846,660)	(6,838,364)
	Closing written down value		72,980,967	72,704,304
5.1.1	Additions during the period/year
	Freehold land		16,311	869,341
	Buildings on freehold land		83,903	5,601,379
	Buildings on leasehold land		–	4,692
	Plant and machinery		1,628,874	19,693,525
	Tools and equipments		158,668	1,747,444
	Offce equipments		127,319	752,343
	Electric installations		70,169	2,790,561
	Furniture and fxtures		56,973	968,754
	Vehicles		81,546	913,940
			2,223,763	33,341,979
5.2	Capital work–in–progress
	Civil works		2,804,126	1,952,364
	Plant and machinery		3,733,109	4,994,429
	Capital stores	5.2.1	1,391,655	1,467,218
	Advances to suppliers		745,742	779,398
			8,674,632	9,193,409

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

			Un audited	Audited
			September 30,	June 30,
			2025	2025
		Note	(Rupees in ‘000)	(Rupees in ‘000)
6.	TRADE DEBTS
	Foreign
	– Secured		12,156,054	13,475,660
	– Unsecured	6.1	30,299,246	33,156,592
	Local
	– Unsecured	6.1	1,705,380	1,682,600
			44,160,680	48,314,852

6.1	Management consider that	Management consider that	these debts are good and will be recovered accordingly.	these debts are good and will be recovered accordingly.	these debts are good and will be recovered accordingly.
7.	AUTHORIZED SHARE CAPITAL
	Un audited	Audited		Un audited	Audited
	September 30,	June 30,		September 30,	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
	5,000,000	5,000,000		50,000,000	50,000,000
8.	ISSUED, SUBSCRIBED AND PAID UP CAPITAL
	Un audited	Audited		Un audited	Audited
	September 30,	June 30,		September 30,	June 30,
	2025	2025		2025	2025
	[Number of shares in ‘000]			(Rupees in ‘000)
	132,429	132,429	Ordinary shares of Rs. 10 each
			fully paid in cash	1,324,289	1,324,289
	1,269,281	1,269,281	Ordinary shares of Rs. 10 each issued as
			fully paid bonus shares	12,692,806	12,692,806
	1,401,710	1,401,710		14,017,095	14,017,095

		Un audited	Audited
		September 30,	June 30,
		2025	2025
		(Rupees in ‘000)	(Rupees in ‘000)
9.	LONG TERM FINANCING
	From fnancial institutions – secured	25,362,007	31,005,452
	Less: Current portion of long term fnancing	(1,649,226)	(2,411,465)
		23,712,781	28,593,987

1[st] Quarter Report

10. CONTINGENCIES AND COMMITMENTS

10.1 Contingencies

10.1.1 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.

10.1.2 Bank guarantees issued by various banks on behalf of the Company in favour of:

10.1.2	Bank guarantees issued by various banks on beh	alf of the Company	in favour of:
		Un audited	Audited
		September 30,	June 30,
		2025	2025
		(Rupees in ‘000)	(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	1,512,353	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 against imposition
	of infrastructure cess	11,533	11,533
	Total Parco Pakistan Limited	6,000	6,000
		3,423,061	3,373,061
	Post dated cheques issued in favour of
	custom authorities for release of
	imported goods	7,579,586	7,878,158
10.2	Commitments
	Under letters of credit for:
	Raw materials	4,446,899	2,972,579
	Capital expenditure	874,206	622,930
	Stores and spares	510,697	207,293
		5,831,802	3,802,802

1[st] Quarter Report

	Quarter ended
	Un audited Un audited September 30, September 30, 2025 2024 (Rupees in ‘000) (Rupees in ‘000)
11. COST OF SALES Raw material consumed Stores and spares consumed Knitting, processing and packing charges Salaries, wages and benefts Staff retirement gratuity Fuel and power Repairs and maintenance Insurance Depreciation on operating fxed assets Depreciation on right of use assets Amortization of intangible assets Rent, rate and taxes Other manufacturing costs	18,852,476 20,789,474 924,058 960,975 878,904 2,002,135 8,098,517 7,250,115 867,151 779,420 2,825,603 2,820,820 225,993 167,780 51,135 52,300 1,611,081 1,251,257 26,263 24,729 85 106 19,406 10,315 120,606 58,900
Opening work in process Closing work in process	34,501,278 36,168,326 5,012,176 4,466,813 (5,406,478) (4,815,630) (394,302) (348,817)
Cost of goods manufactured Opening fnished goods Closing fnished goods	34,106,976 35,819,509 8,346,950 7,268,849 (8,862,510) (9,211,866) (515,560) (1,943,017)
	33,591,416 33,876,492

12. 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, other than those which have been specifically disclosed elsewhere in these financial statements are as follows:

Name Nature of transaction	Quarter ended
	Un audited Un audited September 30, September 30, 2025 2024 (Rupees in ‘000) (Rupees in ‘000)
Interloop Holdings (Pvt) Limited – Associate Services received Gratuity transferred	119,732 130,456 2,607 –
Texlan Center (Pvt) Limited – Associate Sale of yarn Sale of packing material Services received	418,537 731,933 21,732 12,908 85,636 –
Momentum Logistics (Pvt) Limited – Associate Services received	398,162 420,828
Interloop Europe – Associate Sale of socks	25,224 220,120
PrintKraft (Private) Limited–Associate Purchase of packing material	36,974 130,225
Socks & Socks (Private) Limited – Associate Services received Sale of goods – net	64,270 24,614 716 95,499
Interloop Welfare Trust Donation paid	– 20,000
Octans Digital (Private) Limited – Associate Services received Purchase of assets	– 1,261 4,900 –
Interloop Employees Provident Fund Contribution to the fund	32,890 33,589
Lyallpur Literary Council Donations paid	– 3,000
ILNA Inc USA – Associate Services received	502,714 411,597
Zhejiang Top Circle Textiles Co., Ltd – Subsidiary Services received	469,295 1,109,308
Pinghu Top Circle Knitting Co., Ltd – Subsidiary Services received	94 –
Key management personnel & other related parties Sale of asset Repayment of housing fnance loan Markup on house building fnance Rent expenses Remuneration and other benefts Directorship fee	18,303 942 – 1,154 – 52 439 471 1,811,114 1,979,411 5,600 6,375

1[st] Quarter Report

	Un audited Audited September 30, June 30, 2025 2025 (Rupees in ‘000) (Rupees in ‘000)
13.	SHARIAH COMPLIANCE DISCLOSURE STATEMENTOF FINANCIAL POSITION Assets: Shariah compliant investments and bank deposits/bank balances Long term investment 1,727,763 1,727,763 Bank balances 208,788 26,894 Liabilities: Financing as per Islamic mode Long term fnancing 15,752,848 18,138,353 Short term borrowings 18,619,989 14,805,000 Accrued mark up as per conventional mode Long term fnancing 162,900 282,437 Short term borrowings 696,292 32,480 STATEMENTOF PROFITOR LOSS Revenue earned from a shariah compliant business 43,774,357 173,381,533 Mark up on Islamic mode of fnancing (683,111) (3,156,998) Source and detailed break up of other income Other income earned from shariah compliant: Exchange gain – net 6,955 3,698 Scrap sales 232 268 Other income earned from non – shariah compliant: Dividend income – 22,927 Realized gain on derivative fnancial instruments 14,867 288,794 Unrealized gain on derivative fnancial instruments 661,561 – Proft on term fnance certifcates (TFCs) 16,135 84,058

Un audited
Audited
September 30,
June 30,
2025
2025
(Rupees in ‘000)
(Rupees in ‘000)

13.

SHARIAH COMPLIANCE DISCLOSURE
STATEMENTOF FINANCIAL POSITION
Assets:
Shariah compliant investments and bank
deposits/bank balances
Long term investment
1,727,763
1,727,763
Bank balances
208,788
26,894
Liabilities:
Financing as per Islamic mode
Long term fnancing
15,752,848
18,138,353
Short term borrowings
18,619,989
14,805,000
Accrued mark up as per
conventional mode
Long term fnancing
162,900
282,437
Short term borrowings
696,292
32,480
STATEMENTOF PROFITOR LOSS
Revenue earned from a shariah
compliant business
43,774,357
173,381,533
Mark up on Islamic mode of fnancing
(683,111)
(3,156,998)
Source and detailed break up of other income
Other income earned from
shariah compliant:
Exchange gain – net
6,955
3,698
Scrap sales
232
268
Other income earned from non –
shariah compliant:
Dividend income
–
22,927
Realized gain on derivative
fnancial instruments
14,867
288,794
Unrealized gain on derivative
fnancial instruments
661,561
–
Proft on term fnance certifcates (TFCs)
16,135
84,058

Relationship with shariah compliant banks

Name of institutions	Relationship with institutions
MCB Islamic Bank	Bank balance, long term fnancing and short term borrowing
Meezan Bank Limited	Bank balance, long term fnancing and short term borrowing
Habib Bank Limited (Islamic Banking)	Bank balance, long term fnancing and short term borrowing
Faysal Bank Limited	Bank balance, long term fnancing and short term borrowing
Bank Alfalah Limited (Islamic)	Bank balance and short term borrowing
Bank of Punjab (Taqwa Islamic Banking)	Bank balance and short term borrowing
United Bank Limited – Ameen	Bank balance and short term borrowing
Allied Bank Limited (Islamic Banking)	Bank balance

14. OPERATING SEGMENTS

Management has determined the operating segments based on the information that is presented to the Board of Directors of the Company for allocation of resources and assessment of performance. Operating segments are reported in a manner consistent with internal reporting provided to the Chief Operating Decision Maker (‘CODM’). Segment performance is generally evaluated based on certain key performance indicators including business volume and gross profit.

Based on internal management reporting structure and products produced and sold, the Company is organized into the following operating segments:

a) Hosiery

This segment relates to the sale of socks.

b) Spinning

This segment relates to the sale of yarn and its in–house use.

c) Denim

This segment mainly relates to sale of denim products and garments.

d) Apparel

This segment mainly relates to sale of fashion apparels.

e) Other operating segments

These represent various segments of the Company which currently do not meet the minimum reporting threshold mentioned in International financial reporting standards ‘Operating Segments’ (IFRS 8). These mainly include energy, yarn dyeing and active wear.

1[st] Quarter Report

Hosiery Spinning Denim Apparel Others Elimination of Inter Total Segments segment transaction Company	Quarter ended Quarter ended Quarter ended Quarter ended Quarter ended Quarter ended Quarter ended	September September September September September September September September September September September September September September 30, 2025 30, 2024 30, 2025 30, 2024 30, 2025 30, 2024 30, 2025 30, 2024 30, 2025 30, 2024 30, 2025 30, 2024 30, 2025 30, 2024	Rupees in ‘000 Rupees in ‘000 Rupees in ‘000 Rupees in ‘000 Rupees in ‘000 Rupees in ‘000 Rupees in ‘000	Net Sales External sale 30,888,784 29,571,951 1,767,298 2,406,819 4,533,248 4,691,413 6,247,712 4,577,046 337,313 387,589 – –43,774,357 41,634,819 Intersegment sale 5,210 6,427 1,992,678 2,217,564 4,347 5,940 29,058 35,489 3,938,741 3,905,241 (5,970,033) (6,170,661) – – 30,893,994 29,578,378 3,759,976 4,624,383 4,537,596 4,697,353 6,276,771 4,612,535 4,276,054 4,292,830 (5,970,033) (6,170,661) 43,774,357 41,634,819 Cost of sales (20,395,184)(21,468,856) (3,747,292) (4,361,273) (4,323,972) (4,382,689) (7,220,811) (6,001,554) (3,874,190) (3,832,781) 5,970,033 6,170,661(33,591,416)(33,876,492)	Gross proft/(loss) 10,498,810 8,109,522 12,684 263,110 213,624 314,664 (944,040) (1,389,019) 401,864 460,049 – –10,182,941 7,758,327 Distribution cost (1,025,801) (1,164,094) (15,706) (24,871) (199,684) (305,262) (263,429) (312,397) (28,158) (24,135) – –(1,532,778) (1,830,759) Administrative expenses (1,874,471) (1,692,932) (59,106) (54,687) (181,882) (148,575) (366,104) (314,322) (66,573) (42,889) – –(2,548,136) (2,253,405) (2,900,272) (2,857,026) (74,812) (79,558) (381,566) (453,837) (629,533) (626,719) (94,731) (67,024) – –(4,080,914) (4,084,164)	Proft/(loss) before taxation and unallocated income and expenses 7,598,538 5,252,496 (62,128) 183,552 (167,942) (139,173) (1,573,573) (2,015,738) 307,133 393,025 – – 6,102,027 3,674,163 Unallocated income and expenses Other operating expenses (561,109) (230,166) Other income 699,750 276,978 Finance cost (1,697,581) (2,851,023) Levies – (569,970) Income tax (1,745,654) (77,704) Proft for the period 2,797,433 222,278 Depreciation and amortization 649,749 534,690 44,014 44,227 120,207 123,100 684,653 595,572 393,044 169,242 – – 1,891,666 1,466,831

Hosiery Spinning Denim Apparel Others Elimination of Inter Total Segments segment transaction Company	Un audited Audited Un audited Audited Un audited Audited Un audited Audited Un audited Audited Un audited Audited Un audited Audited September June September June September June September June September June September June September June 30, 2025 30, 2025 30, 2025 30, 2025 30, 2025 30, 2025 30, 2025 30, 2025 30, 2025 30, 2025 30, 2025 30, 2025 30, 2025 30, 2025	Rupees in ‘000 Rupees in ‘000 Rupees in ‘000 Rupees in ‘000 Rupees in ‘000 Rupees in ‘000 Rupees in ‘000	Total assets for reportable segment 81,754,330 82,833,908 8,810,431 8,532,824 16,879,862 17,632,030 40,685,948 40,637,874 13,045,698 12,861,503 13,246,812 14,228,517174,423,083176,726,656	Total liabilities for reportable segment 46,129,170 51,357,794 910,442 1,000,118 3,902,011 3,018,280 5,214,236 3,756,205 1,876,209 1,516,088 58,370,548 60,855,136116,402,615121,503,621	Segment capital expenditures 563,525 14,065,201 54,267 505,546 440,196 2,274,748 178,309 1,680,042 485,151 3,172,891 – – 1,721,447 21,698,428	14.3 The Company disaggregated revenue based on geographical location of its customers: Quarter ended Un audited September September 30, 2025 30, 2024 Rupees in ‘000 Foreign countries 41,726,125 39,007,356 Pakistan 2,048,232 2,627,463 43,774,357 41,634,819

1[st] Quarter Report 31

15. FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. To provide an indication about the reliability of the inputs used in determining fair value, the Company classifies its financial instruments into the three levels prescribed under the IFRSs.

Level 1: Fair value measurements using quoted (unadjusted) in active markets for identical asset or liability.

Level 2: Fair value measurements using inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

Level 3: Fair value measurements using inputs for the asset or liability that are not based on observable market data (i.e. unobservable inputs).

The following table presents the Company’s significant financial assets and liabilities measured and recognized at fair value at September 30, 2025 and June 30, 2025 on a recurring basis:

Financial assets Derivative fnancial instruments	Un audited
	September 30, 2025
	Level 1 Level 2 Level 3 Total Rupees in ‘000 - 648,505 - 648,505
Total fnancial assets	- 648,505 - 648,505
Total fnancial liabilities	- - - -
Total fnancial assets	Audited
	June 30, 2025
	Level 1 Level 2 Level 3 Total Rupees in ‘000 - - - -
Financial liabilities Derivative fnancial instruments	- 13,056 - 13,056
Total fnancial liabilities	- 13,056 - 13,056

During the period, there were no significant changes in the business or economic circumstances that affect the fair value of the Company’s financial assets and financial liabilities. Furthermore, there were no reclassifications of financial assets.

16. FINANCIAL RISK MANAGEMENT

The Company’s activities expose it to a variety of financial risks: market risk (including currency risk, fair value interest rate risk, cash flow interest rate risk and price risk), credit risk and liquidity risk.

The Company finances its operations through equity, borrowings and management of working capital with a view to maintain an appropriate mix between various sources of finance to minimize risk. The Company follows an effective cash management and planning policy and maintains flexibility in funding by keeping committed credit lines available. Market risks are managed by the Company through the adoption of appropriate policies to cover currency risks and interest rate risks.

The Company has managed its currency risks by forward currency contracts.

There have been no changes in the risk management policies since June 30, 2025 except for those specifically mentioned. Consequently, these condensed interim financial statements do not include all the financial risk management information and disclosures required for the annual financial statements.

17. DATE OF AUTHORIZATION FOR ISSUE

These unconsolidated condensed interim financial statements were authorized for issue on October 27, 2025 by the Board of Directors of the Company.

18. EVENT AFTER THE REPORTING DATE

The Board of Directors in their meeting held on September 10, 2025 proposed a final cash dividend of Re. 1 per share (2024: Rs. 2.5 per share), amounting to Rs. 1,401.71 million (2024: Rs. 3,504.27 million), for the year ended 30 June 2025. The same has been approved by the members at the Annual General Meeting of the Company.

19. GENERAL

19.1 Corresponding figures

In order to comply with the requirements of IAS 34, the unconsolidated condensed interim statement of financial position has been compared with the balances of annual audited financial statements of immediately preceding financial year, whereas, the unconsolidated condensed interim statement of profit or loss, unconsolidated condensed interim statement of comprehensive income, unconsolidated condensed interim statement of changes in equity and unconsolidated condensed interim statement of cash flows have been compared with the balances of comparable periods of immediately preceding financial year.

19.2 Rounding

Figures have been rounded off to the nearest thousand.

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CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS For The Quarter Ended September 30, 2025

CONSOLIDATED CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION As at September 30, 2025

		Un audited	Audited
		September 30,	June 30,
		2025	2025
	Note	(Rupees in ‘000)	(Rupees in ‘000)
ASSETS
NON CURRENT ASSETS
Property, plant and equipment	6	83,741,180	84,050,845
Intangible assets		497,942	485,463
Long term investments		197,520	198,017
Long term loans		177,063	198,075
Long term deposits		91,311	95,481
		84,705,016	85,027,881
CURRENT ASSETS
Stores and spares		3,755,431	3,476,263
Stock in trade		27,319,732	26,714,281
Trade debts	7	44,546,836	49,388,925
Loans and advances		3,536,078	2,371,977
Deposits, prepayments and other
receivables		957,734	720,788
Derivative fnancial instruments		648,505	–
Accrued income		868	877
Refunds due from Government and
statutory authorities		10,566,995	11,538,248
Short term investment		500,000	500,000
Cash and bank balances		1,225,378	1,088,334
		93,057,557	95,799,693
TOTAL ASSETS		177,762,573	180,827,574

		Un audited	Audited
		September 30,	June 30,
		2025	2025
	Note	(Rupees in ‘000)	(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 capital	9	14,017,095	14,017,095
Reserves		3,124,272	3,130,793
Unappropriated proft		41,722,366	38,960,121
Equity attributable to owners of parent company		58,863,733	56,108,009
Non – controlling interest		1,446,205	1,469,665
		60,309,938	57,577,674
NON CURRENT LIABILITIES
Long term fnancing	10	23,712,781	28,593,987
Lease liabilities		275,849	312,429
Deferred liabilities		14,868,857	14,323,587
		38,857,487	43,230,003
CURRENT LIABILITIES
Trade and other payables		18,455,181	16,515,419
Unclaimed dividend		2,920	3,112
Derivative fnancial instruments		–	13,056
Accrued mark up		1,534,624	1,022,221
Short term borrowings		56,835,923	59,948,702
Current portion of non current liabilities		1,766,500	2,517,387
		78,595,148	80,019,897
CONTINGENCIES AND COMMITMENTS	11	–	–
TOTAL EQUITY AND LIABILITIES		177,762,573	180,827,574

The annexed notes form an integral part of these consolidated condensed interim financial statements.

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CONSOLIDATED CONDENSED INTERIM STATEMENT OF PROFIT OR LOSS For The Quarter Ended September 30, 2025

Note	Quarter ended
	Un audited Un audited September 30, September 30, 2025 2024 (Rupees in ‘000) (Rupees in ‘000)
Net sales Cost of sales 12	45,202,252 42,746,190 (34,682,641) (34,606,118)
Gross proft Distribution cost Administrative expenses Other operating expenses Other income	10,519,611 8,140,072 (1,619,005) (1,897,361) (2,763,161) (2,433,345) (607,438) (242,499) 706,919 277,630 (4,282,685) (4,295,575)
Proft from operations Finance cost	6,236,926 3,844,497 (1,702,740) (2,860,393)
Proft before income tax and levies Levies	4,534,186 984,104 – (569,970)
Proft before income tax Income tax	4,534,186 414,134 (1,791,734) (79,651)
Proft for the period	2,742,452 334,483
Attributable to: Owners of parent company Non – controlling interest	2,762,245 294,089 (19,793) 40,394
	2,742,452 334,483
Earnings per share – basic and diluted (Rupees)	1.96 0.24

The annexed notes form an integral part of these consolidated condensed interim financial statements.

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CONSOLIDATED CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME For The Quarter Ended September 30, 2025

	Quarter ended
	Un audited Un audited September 30, September 30, 2025 2024 (Rupees in ‘000) (Rupees in ‘000)
Proft for the period Other comprehensive income: Items that may be reclassifed subsequently to proft or loss: Exchange difference on translation of foreign operations	2,742,452 334,483 (10,188) 125,421
Total comprehensive income for the period	2,732,264 459,904
Attributable to: Owners of parent company Non – controlling interest	2,755,724 374,359 (23,460) 85,545
	2,732,264 459,904

The annexed notes form an integral part of these consolidated condensed interim financial statements.

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Director

CONSOLIDATED CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY For The Quarter Ended September 30, 2025

Attributable to owners of the Parent Capital Reserve Revenue Reserves Share Share Unappropriated Translation Sub Non - Total Capital Premium Proft Reserve total controlling Interest (Rupees in ‘000)	Balance as at July 01, 2024 – audited 14,017,095 3,158,734 37,096,363 (110,728) 54,161,464 1,325,672 55,487,136 Proft for the period – – 294,089 – 294,089 40,394 334,483 Other comprehensive income – – – 80,270 80,270 45,151 125,421 Total comprehensive income for the period – – 294,089 80,270 374,359 85,545 459,904	Balance as at September 30, 2024 (un–audited) 14,017,095 3,158,734 37,390,452 (30,458) 54,535,823 1,411,217 55,947,040	Balance as at July 01, 2025 – audited 14,017,095 3,158,734 38,960,121 (27,941) 56,108,009 1,469,665 57,577,674 Proft for the period – – 2,762,245 – 2,762,245 (19,793) 2,742,452 Other comprehensive income – – – (6,521) (6,521) (3,667) (10,188) Total comprehensive income for the period – – 2,762,245 (6,521) 2,755,724 (23,460) 2,732,264	Balance as at September 30, 2025 (un–audited) 14,017,095 3,158,734 41,722,366 (34,462) 58,863,733 1,446,205 60,309,938	The annexed notes form an integral part of these consolidated condensed interim fnancial statements.

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CONSOLIDATED CONDENSED INTERIM STATEMENT OF CASH FLOWS For The Quarter Ended September 30, 2025

		Un audited	Un audited
		September 30,	September 30,
		2025	2024
		(Rupees in ‘000)	(Rupees in ‘000)
A)	CASH FLOWS FROM OPERATING ACTIVITIES
	Proft before income tax and levies Adjustments for:	4,534,186	984,104
	Depreciation on operating fxed assets	1,899,563	1,478,877
	Depreciation on right of use assets	47,521	47,214
	Amortization of intangible assets	18,888	16,493
	Workers’ proft participation fund	244,055	44,130
	Workers’ welfare fund	93,686	33,383
	Staff retirement gratuity	991,108	891,287
	Loss on disposal of non current assets	11,687	41,242
	Provision for obsolete inventory	80,530	91,772
	Exchange loss – net	9,219	49,332
	Realized gain on derivative fnancial instruments Unrealized gain on derivative fnancial instruments	(14,867) (661,561)	(105,694) (143,136)
	Loss on disposal of intangible asset Proft on term fnance certifcates TFCs	– (16,135)	5,326 (27,288)
	Finance cost	1,702,744	2,860,393
	Operating cash fows before working capital changes	8,940,624	6,267,435
	Changes in working capital
	(Increase) / decrease in current assets
	Stores and spares	(279,168)	(9,979)
	Stock in trade	(919,719)	(2,188,219)
	Trade debts	4,275,855	(2,332,934)
	Loans and advances	(1,144,429)	(821,634)
	Deposit, prepayments and other receivables	(401,061)	(162,860)
	Refunds due from Government and
	statutory authorities	458,593	(1,202,819)
	Increase in current liabilities
	Trade and other payables	3,050,861	1,503,145
		5,040,932	(5,215,301)
	Cash generated from operations	13,981,556	1,052,134
	Finance cost paid	(1,166,490)	(3,607,920)
	Income tax paid	(1,321,911)	(1,151,487)
	Staff retirement gratuity paid Workers’ proft participation fund paid	(396,928) (502,403)	(179,466) (975,816)
	Workers’ welfare fund paid	(30,000)	–
	Long term loans paid Settlement of derivative fnancial instruments	24,653 14,867	(25,380) 105,694
	Long term deposits received	4,170	–
	Exchange Loss – net	(2,166)	–
	Net cash generated from / (used in)
	operating activities	10,605,347	(4,782,241)

1[st] Quarter Report 41

			Un audited	Un audited
			September 30,	September 30,
			2025	2024
			(Rupees in ‘000)	(Rupees in ‘000)
B)	CASH FLOWS FROM INVESTING ACTIVITIES
	Additions in:
	Property, plant and equipment		(1,714,039)	(5,172,135)
	Intangible asset		(18,251)	(37,040)
	Proceeds from disposal of property,
	plant and equipment		88,087	71,194
	Proft received from investments		16,144	27,524
	Net cash used in investing activities		(1,628,059)	(5,110,457)
C)	CASH FLOWS FROM FINANCING ACTIVITIES
	Repayment of long term fnancing		(5,650,621)	(648,927)
	Payment of lease rentals		(76,801)	(84,349)
	Short term borrowings – net		(3,112,630)	10,611,929
	Dividend paid		(192)	(159)
	Net cash (used in) / generated from fnancing activities		(8,840,244)	9,878,495
	Net increase/(decrease) in cash and
	cash equivalents	(A+B+C)	137,044	(14,203)
	Cash and cash equivalents at the
	beginning of the period		1,088,334	1,510,910
	Cash and cash equivalents at the end
	of the period		1,225,378	1,496,707

The annexed notes form an integral part of these consolidated condensed interim financial statements.

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Chief Executive Officer

Chief Financial Officer

Director

NOTES TO THE CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS For The Quarter Ended September 30, 2025

1. THE GROUP AND ITS OPERATIONS

The Group comprises of:

Interloop Limited – The Holding Company

Interloop Limited (the Holding 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 Holding 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 Holding 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 Holding 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 Holding Company’s diverse & engaged workforce and operational excellence has established it as a Partner of Choice for its customers.

Top Circle Hosiery Mills Co., Inc. – The Subsidiary Company (Holding– 64% (2025: 64%))

Top Circle Hosiery Mills Co., Inc. was incorporated in 1992. The registered office of the company is situated at 329 Franklin St. Weissport, PA, USA and manufacturing facility is loacted in 800 Quyang Road, Shanghai, China. The principle business activity is manufacturing and trading of highest quality hosiery products. The company has 100% equity stake directly and indirectly in following companies;

Shanghai Haolu Trading Co., Ltd
Pinghu Top Circle Knitting Co., Ltd
Zhejiang Top Circle Textiles Co., Ltd
Shanghai Chenzhou Industry Co., Ltd
Haolu Trading USA Co., Inc.

2. BASIS OF PREPARATION

These consolidated 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:

i) International Accounting Standard (‘IAS’) 34, ‘Interim Financial Reporting’, issued by International Accounting Standards Board (‘IASB’) as notified under the Companies Act, 2017, and
ii) Provisions of and directives issued under the Companies Act, 2017.

These consolidated condensed interim financial statements do not include all of the information required for full annual financial statements and should be read in conjunction with the financial statements for the year ended June 30, 2025.

1[st] Quarter Report

3. BASIS OF CONSOLIDATION

Subsidiaries

Subsidiaries are the entities over which the Group has control. The Group controls an entity when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power to direct the activities of the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Group and is deconsolidated from the date that control ceases.

The assets and liabilities of Subsidiary Companies have been consolidated on a line by line basis and carrying value of investments held by the Holding Company is eliminated against Holding Company’s share in paid up capital of the Subsidiary Companies.

Intragroup balances and transactions have been eliminated.

Non–controlling interests are that part of net results of the operations and of net assets of Subsidiary Companies attributable to interest which are not owned by the Holding Company. Non–controlling interests are presented as separate item in the consolidated financial statements.

4. CRITICAL ACCOUNTING ESTIMATES AND JUDGMENTS

The preparation of consolidated 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 consolidated 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 Group for the year ended June 30, 2025.

5. MATERIAL ACCOUNTING POLICY INFORMATION

The accounting policies adopted in the preparation of these consolidated condensed interim financial statements are the same as those applied in the preparation of preceding annual audited financial statements of the Group for the year ended June 30, 2025.

			Un audited	Audited
			September 30,	June 30,
			2025	2025
		Note	(Rupees in ‘000)	(Rupees in ‘000)
6.	PROPERTY, PLANT AND EQUIPMENT
	Operating fxed assets	6.1	74,603,624	74,380,911
	Capital work–in–progress	6.2	8,778,052	9,304,294
	Right of use assets		359,505	365,640
			83,741,180	84,050,845
6.1	Operating fxed assets
	Opening written down value		74,380,901	48,407,540
	Add: Additions during the period/year	6.1.1	2,226,871	33,381,181
	Less: Disposals during the period/year		(100,440)	(414,161)
	Less: Depreciation charged during
	the period/year		(1,899,563)	(7,051,589)
	Exchange rate translation impact on
	opening balances		(4,145)	57,940
	Closing written down value		74,603,624	74,380,911
6.1.1	Additions during the period/year
	Freehold land		16,311	869,341
	Buildings on freehold land		83,903	5,601,379
	Buildings on leasehold land		–	4,692
	Plant and machinery		1,628,874	19,731,509
	Tools and equipments		158,668	1,747,444
	Offce equipments		130,427	755,673
	Electric installations		70,169	2,790,561
	Furniture and fxtures		56,973	968,754
	Vehicles		81,546	911,828
			2,226,871	33,381,181
6.2	Capital work–in–progress
	Civil works		2,804,126	1,952,364
	Plant and machinery		3,836,529	5,105,314
	Capital stores	6.2.1	1,391,655	1,467,218
	Advances to suppliers		745,742	779,398
			8,778,052	9,304,294

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

1[st] Quarter Report

			Un audited	Audited
			September 30,	June 30,
			2025	2025
		Note	(Rupees in ‘000)	(Rupees in ‘000)
7.	TRADE DEBTS
	Foreign
	– Secured		12,156,054	13,475,660
	– Unsecured	7.1	30,685,402	34,230,665
	Local
	– Unsecured	7.1	1,705,380	1,682,600
			44,546,836	49,388,925

7.1 Management consider that these debts are good and will be recovered accordingly.

8.	AUTHORIZED SHARE CAPITAL	AUTHORIZED SHARE CAPITAL	AUTHORIZED SHARE CAPITAL
	Un audited	Audited		Un audited	Audited
	September 30,	June 30,		September 30,	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
	5,000,000	5,000,000		50,000,000	50,000,000
9.	ISSUED, SUBSCRIBED AND PAID UP CAPITAL
	Un audited	Audited		Un audited	Audited
	September 30,	June 30,		September 30,	June 30,
	2025	2025		2025	2025
	[Number of shares in ‘000]			(Rupees in ‘000)
	132,429	132,429	Ordinary shares of Rs. 10 each
			fully paid in cash	1,324,289	1,324,289
	1,269,281	1,269,281	Ordinary shares of Rs. 10 each issued as
			fully paid bonus shares	12,692,806	12,692,806
	1,401,710	1,401,710		14,017,095	14,017,095

		Un audited	Audited
		September 30,	June 30,
		2025	2025
		(Rupees in ‘000)	(Rupees in ‘000)
10.	LONG TERM FINANCING
	From fnancial institutions – secured	25,362,007	31,005,452
	Less: Current portion of long term fnancing	(1,649,226)	(2,411,465)
		23,712,781	28,593,987

11. CONTINGENCIES AND COMMITMENTS

11.1 Contingencies

11.1.1 The Punjab Revenue Authority (PRA) raised a demand of Rs. 60.720 million against the Holding 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 Holding 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 Holding 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 Holding 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 Holding Company’s bank account. In response, the Holding 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 Holding 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 Holding Company has preferred a further appeal before the Honourable Appellate Tribunal PRA, where the matter is currently pending adjudication.

The Holding 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 Holding Company, inter alia on the basis of the advice of the tax consultant and relevant law and facts.

1[st] Quarter Report

11.1.2 Bank guarantees issued by various banks on behalf of the Holding Company in favour of:

11.1.2	Bank guarantees issued by various banks on beh of:	alf of the Holding C	ompany in favour
		Un audited	Audited
		September 30,	June 30,
		2025	2025
		(Rupees in ‘000)	(Rupees in ‘000)
	Sui Northern Gas Pipelines limited (SNGPL)
	against supply of gas	1,731,380	1,731,380
	The Director, Excise and Taxation, Karachi
	against imposition of infrastructure cess	1,512,353	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 against imposition
	of infrastructure cess	11,533	11,533
	Total Parco Pakistan Limited	6,000	6,000
		3,423,061	3,373,061
11.1.3	Post dated cheques issued in favour of
	custom authorities for release of
	imported goods	7,579,586	7,878,158
11.2	Commitments
	Under letters of credit for:
	Raw materials	4,446,899	2,972,579
	Capital expenditure	874,206	622,930
	Stores and spares	510,697	207,293
		5,831,802	3,802,802

	Quarter ended
	Un audited Un audited September 30, September 30, 2025 2024 (Rupees in ‘000) (Rupees in ‘000)
12. COST OF SALES Raw material consumed Stores and spares consumed Knitting, processing and packing charges Salaries, wages and benefts Staff retirement gratuity Fuel and power Repairs and maintenance Insurance Depreciation on operating fxed assets Amortization of intangible assets Depreciation on right of use assets Rent, rate and taxes Other manufacturing costs	20,024,334 21,175,108 933,229 963,078 442,778 2,030,722 8,198,947 7,351,224 867,151 779,420 2,869,908 2,863,157 226,368 177,673 51,135 52,300 1,646,909 1,288,336 85 106 41,327 44,359 22,613 10,315 120,606 58,900
Opening work in process Closing work in process	35,445,390 36,794,697 5,196,278 4,523,957 (5,558,955) (4,855,696) (362,677) (331,739)
Cost of goods manufactured Opening fnished goods Closing fnished goods	35,082,713 36,462,958 8,807,001 7,608,012 (9,207,073) (9,464,852) (400,072) (1,856,840)
	34,682,641 34,606,118

13. TRANSACTIONS WITH RELATED PARTIES

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

1[st] Quarter Report 49

Name Nature of transaction	Quarter ended
	Un audited Un audited September 30, September 30, 2025 2024 (Rupees in ‘000) (Rupees in ‘000)
Interloop Holdings (Pvt) Limited – Associate Services received Gratuity transferred	119,732 130,456 2,607 –
Texlan Center (Pvt) Limited – Associate Sale of yarn Sale of packing material Services received	418,537 731,933 21,732 12,908 85,636 –
Momentum Logistics (Private) Limited – Associate Services received	398,162 420,828
Interloop Europe – Associate Sale of socks	25,224 220,120
PrintKraft (Private) Limited – Associate Purchase of packing material	36,974 130,225
Socks & Socks (Private) Limited – Associate Services received Sale of goods– net	64,270 24,614 716 95,499
Interloop Welfare Trust – Trustee Donation paid	– 20,000
Octans Digital (Private) Limited – Associate Services received Purchase of assets	– 1,261 4,900 –
Interloop Employees Provident Fund Contribution to the fund	32,890 33,589
Layallpur Literary Council – Trustee Donation paid	– 3,000
ILNA Inc USA – Associate Services received	502,714 411,597
Key management personnel Sale of asset & other related parties Repayment of housing fnance loan Markup on housing fnance loan Rent expenses Remuneration and other benefts Directorship fee	18,303 942 – 1,154 – 52 439 471 1,839,474 2,005,935 5,600 6,375

	Un audited Audited September 30, June 30, 2025 2025 (Rupees in ‘000) (Rupees in ‘000)
14.	SHARIAH COMPLIANCE DISCLOSURE STATEMENTOF FINANCIAL POSITION Assets: Shariah compliant investments and bank deposits/bank balances Long term investment 197,520 198,017 Bank balances 208,788 26,894 Liabilities: Financing as per Islamic mode Long term fnancing 15,752,848 18,138,353 Short term borrowings 18,619,989 14,805,000 Accrued mark up as per conventional mode Long term fnancing 162,900 282,437 Short term borrowings 696,292 32,569 STATEMENTOF PROFITOR LOSS Revenue earned from a shariah compliant business 45,202,252 179,405,283 Mark up on Islamic mode of fnancing (683,111) (3,156,998) Source and detailed break up of other income Other income earned from shariah compliant: Exchange gain – net 6,955 130,762 Scrap sales and others 7,401 7,827 Other income earned from non – shariah compliant: Dividend income – 22,927 Realized gain on derivative fnancial instruments 14,867 288,794 Unrealized gain on derivative fnancial instruments 661,561 – Proft on term fnance certifcates (TFCs) 16,135 84,058

Un audited
Audited
September 30,
June 30,
2025
2025
(Rupees in ‘000)
(Rupees in ‘000)

14.

SHARIAH COMPLIANCE DISCLOSURE
STATEMENTOF FINANCIAL POSITION
Assets:
Shariah compliant investments and bank
deposits/bank balances
Long term investment
197,520
198,017
Bank balances
208,788
26,894
Liabilities:
Financing as per Islamic mode
Long term fnancing
15,752,848
18,138,353
Short term borrowings
18,619,989
14,805,000
Accrued mark up as per
conventional mode
Long term fnancing
162,900
282,437
Short term borrowings
696,292
32,569
STATEMENTOF PROFITOR LOSS
Revenue earned from a shariah
compliant business
45,202,252
179,405,283
Mark up on Islamic mode of fnancing
(683,111)
(3,156,998)
Source and detailed break up of other income
Other income earned from
shariah compliant:
Exchange gain – net
6,955
130,762
Scrap sales and others
7,401
7,827
Other income earned from non –
shariah compliant:
Dividend income
–
22,927
Realized gain on derivative
fnancial instruments
14,867
288,794
Unrealized gain on derivative
fnancial instruments
661,561
–
Proft on term fnance certifcates (TFCs)
16,135
84,058

1[st] Quarter Report

Relationship with shariah compliant banks

Name of institutions	Relationship with institutions
MCB Islamic Bank	Bank balance, long term fnancing and short term borrowing
Meezan Bank Limited	Bank balance, long term fnancing and short term borrowing
Habib Bank Limited (Islamic Banking)	Bank balance, long term fnancing and short term borrowing
Faysal Bank Limited	Bank balance, long term fnancing and short term borrowing
Bank Alfalah Limited (Islamic)	Bank balance and short term borrowing
Bank of Punjab (Taqwa Islamic Banking)	Bank balance and short term borrowing
United Bank Limited – Ameen	Bank balance and short term borrowing
Allied Bank Limited (Islamic Banking)	Bank balance

15. OPERATING SEGMENTS

Management has determined the operating segments based on the information that is presented to the Board of Directors of the Holding Company for allocation of resources and assessment of performance. Operating segments are reported in a manner consistent with internal reporting provided to the Chief Operating Decision Maker (‘CODM’). Segment performance is generally evaluated based on certain key performance indicators including business volume and gross profit.

Based on internal management reporting structure and products produced and sold, the Group is organized into the following operating segments:

a) Hosiery

This segment relates to the sale of socks.

b) Spinning

This segment relates to the sale of yarn.

c) Denim

This segment mainly relates to sale of denim products and garments.

d) Apparel

This segment mainly relates to sale of fashion apparels.

e) Other operating segments

These represent various segments of the Group which currently do not meet the minimum reporting threshold mentioned in International financial reporting standards ‘Operating Segments’ (IFRS 8). These mainly include energy, yarn dyeing, active wear and other subsidiaries.

Hosiery Spinning Denim Apparel Others Elimination of Inter Total Segments segment transaction Group	Quarter ended Quarter ended Quarter ended Quarter ended Quarter ended Quarter ended Quarter ended	September September September September September September September September September September September September September September 30, 2025 30, 2024 30, 2025 30, 2024 30, 2025 30, 2024 30, 2025 30, 2024 30, 2025 30, 2024 30, 2025 30, 2024 30, 2025 30, 2024	Rupees in ‘000 Rupees in ‘000 Rupees in ‘000 Rupees in ‘000 Rupees in ‘000 Rupees in ‘000 Rupees in ‘000	Net sales External sale 30,888,784 29,571,951 1,767,298 2,406,819 4,533,248 4,691,413 6,247,712 4,577,046 1,765,209 1,498,960 – –45,202,252 42,746,190 Intersegment sale 5,210 6,427 1,992,678 2,217,564 4,347 5,940 29,058 35,489 4,408,130 5,014,549 (6,439,423) (7,279,970) – – 30,893,994 29,578,378 3,759,976 4,624,383 4,537,596 4,697,353 6,276,771 4,612,535 6,173,339 6,513,509 (6,439,423) (7,279,970) 45,202,252 42,746,190 Cost of sales (20,395,184)(21,468,856) (3,747,292) (4,361,273) (4,323,972) (4,382,689) (7,220,811) (6,001,554) (5,434,805) (5,671,716) 6,439,423 7,279,970(34,682,641)(34,606,118)	Gross proft/(loss) 10,498,810 8,109,522 12,684 263,110 213,624 314,664 (944,040) (1,389,019) 738,534 841,793 – –10,519,611 8,140,072 Distribution cost (1,025,801) (1,164,094) (15,706) (24,871) (199,684) (305,262) (263,429) (312,397) (114,385) (90,737) – –(1,619,005) (1,897,361) Administrative expenses (1,874,471) (1,692,932) (59,106) (54,687) (181,882) (148,575) (366,104) (314,322) (281,598) (222,829) – –(2,763,161) (2,433,345) (2,900,272) (2,857,026) (74,812) (79,558) (381,566) (453,837) (629,533) (626,719) (395,983) (313,566) – –(4,382,166) (4,330,706)	Proft/(loss) before taxation and unallocated income and expenses 7,598,538 5,252,496 (62,128) 183,552 (167,942) (139,173) (1,573,573) (2,015,738) 342,551 528,227 – – 6,137,445 3,809,366 Unallocated income and expenses Other operating expenses (607,438) (242,499) Other income 706,919 277,630 Finance cost (1,702,740) (2,860,393) Levies – (569,970) Income tax (1,791,734) (79,651) Proft for the period 2,742,452 334,483 Depreciation and amortization 649,749 534,690 44,014 44,227 120,207 123,100 684,653 595,572 467,350 244,995 – – 1,965,972 1,542,584

1[st] Quarter Report 53

Hosiery Spinning Denim Apparel Others Elimination of Inter Total Segments segment transaction Group	Un audited Audited Un audited Audited Un audited Audited Un audited Audited Un audited Audited Un audited Audited Un audited Audited September June September June September June September June September June September June September June 30, 2025 30, 2025 30, 2025 30, 2025 30, 2025 30, 2025 30, 2025 30, 2025 30, 2025 30, 2025 30, 2025 30, 2025 30, 2025 30, 2025	Rupees in ‘000 Rupees in ‘000 Rupees in ‘000 Rupees in ‘000 Rupees in ‘000 Rupees in ‘000 Rupees in ‘000	Total assets for reportable segment 81,754,330 81,106,145 8,810,431 8,532,824 16,879,862 17,632,030 40,685,948 40,637,874 16,385,188 18,690,184 13,246,812 14,228,517177,762,573180,827,574	Total liabilities for reportable segment 46,129,170 50,892,999 910,442 1,000,118 3,902,011 3,018,280 5,214,236 3,756,205 2,926,229 3,727,162 58,370,548 60,855,136117,452,635123,249,900	Segment capital expenditures 563,525 14,065,201 54,267 505,546 440,196 2,274,748 178,309 1,680,042 10,842 3,422,344 485,151 – 1,732,290 21,947,881	15.3 The Group disaggregated revenue based on geographical location of its customers: Quarter ended Un audited September September 30, 2025 30, 2024 Rupees in ‘000 Foreign countries 43,154,020 40,118,727 Pakistan 2,048,232 2,627,463 45,202,252 42,746,190

16. FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. To provide an indication about the reliability of the inputs used in determining fair value, the Group classifies its financial instruments into the three levels prescribed under the IFRSs.

Level 1: Fair value measurements using quoted (unadjusted) in active markets for identical asset or liability.

Level 3: Fair value measurements using inputs for the asset or liability that are not based on observable market data (i.e. unobservable inputs).

The following table presents the Group’s significant financial assets and liabilities measured and recognized at fair value at September 30, 2025 and June 30, 2025 on a recurring basis:

Financial assets Derivative fnancial instruments	Un audited
	September 30, 2025
	Level 1 Level 2 Level 3 Total Rupees in ‘000 - 648,505 - 648,505
Total fnancial assets	- 648,505 - 648,505
Total fnancial liabilities	- - - -

Total fnancial assets	Audited
	June 30, 2025
	Level 1 Level 2 Level 3 Total Rupees in ‘000 - - - -
Financial liabilities Derivative fnancial instruments	- 13,056 - 13,056
Total fnancial liabilities	- 13,056 - 13,056

During the period, there were no significant changes in the business or economic circumstances that affect the fair value of the Group’s financial assets and financial liabilities. Furthermore, there were no reclassifications of financial assets.

1[st] Quarter Report

17. FINANCIAL RISK MANAGEMENT

The Group’s activities expose it to a variety of financial risks: market risk (including currency risk, fair value interest rate risk, cash flow interest rate risk and price risk), credit risk and liquidity risk.

The Group finances its operations through equity, borrowings and management of working capital with a view to maintain an appropriate mix between various sources of finance to minimize risk. The Group follows an effective cash management and planning policy and maintains flexibility in funding by keeping committed credit lines available. Market risks are managed by the Group through the adoption of appropriate policies to cover currency risks and interest rate risks.

The Group has managed its currency risks by forward currency contracts.

There have been no changes in the risk management policies since June 30, 2025 except for those specifically mentioned. Consequently, these consolidated condensed interim financial statements do not include all the financial risk management information and disclosures required for the annual financial statements.

18. DATE OF AUTHORIZATION FOR ISSUE

These consolidated condensed interim financial statements were authorized for issue on October 27, 2025 by the Board of Directors of the Holding Company.

19. EVENT AFTER THE REPORTING DATE

The Board of Directors of the Holding Company in their meeting held on September 10, 2025 have proposed a final cash dividend of Re. 1 per share (2024: Rs. 2.5 per share), amounting to Rs. 1,401.71 million (2024: Rs. 3,504.27 million), for the year ended 30 June 2025. The same has been approved by the members at the Annual General Meeting of the Company.

20. GENERAL

20.1 Corresponding figures

In order to comply with the requirements of IAS 34, the consolidated condensed interim statement of financial position has been compared with the balances of annual audited financial statements of immediately preceding financial year, whereas, the consolidared condensed interim statement of profit or loss, consolidated condensed interim statement of comprehensive income, consolidated condensed interim statement of changes in equity and consolidated condensed interim statement of cash flows have been compared with the balances of comparable periods of immediately preceding financial year.

20.2 Rounding

Figures have been rounded off to the nearest thousand.

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Chief Executive Officer

Chief Financial Officer

Director

Corporate Office

1KM, Khurrianwala - Jaranwala Road, Khurrianwala, Faisalabad, Pakistan. P : (92) 41 4360 400 F : (92) 41 2428 704 M : [email protected]

Registered Office

15-A, Peoples Colony No.1, Faisalabad, Pakistan. P : (92) 41 4360 400 F : (92) 41 2428 704

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InterloopLimited InterloopLtd interlooplimited interlooplimited www.interloop-pk.com

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Interloop Limited — Interim / Quarterly Report 2025

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