Interloop Limited — Interim / Quarterly Report 2026

Feb 24, 2026

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

TABLE OF CONTENTS
Company Information	02
Directors’ Review Report	04
ڈائ� زک جئہ رپرٹ	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 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
Independent Auditors’ Review Report to the Members	37
Consolidated Condensed Interim Statement of Financial Position	38
Consolidated Condensed Interim Statement of Proft 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

Half Year Report 01

COMPANY INFORMATION

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

Muhammad Maqsood Member

Jahan Zeb Khan Banth Non-Executive Director

Fatima Asad Khan Member

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

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

Farwa Hasnain Member

HEAD OF INTERNAL AUDIT

Jamshaid Iqbal

02

CHIEF INFORMATION OFFICER

E- COMMUNICATION

Website: www.interloop-pk.com

Muhammad Yaqub Ahsan Bhatti

LEGAL ADVISOR

Haidermota & Co.

AUDITORS

Kreston Hyder Bhimji & Co. Chartered Accountants

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

REGISTERED OFFICE

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-eAiwan-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

Interloop Limited

15-A, Peoples Colony No. 1, Faisalabad, Pakistan Phone: (92-41) 4360400 Fax: (92-41) 2428704 Email: externalaffairs@interloop.com.pk 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.

Half Year Report 03

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

04

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

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Rs. in Million
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100,000
87,418
83,971
80,000
60,000
40,000
20,618 16,284
20,000 13,737
8,067 6,268
0 1,373
Sales Gross profit Profit from operations Net Profit
Half year ended December 31, 2025 Half year ended December 31, 2024
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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

Half Year Report

05

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

06

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

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Navid Fazil (Chief Executive Officer) Faisalabad February 04, 2026

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Jahan Zeb Khan Banth (Director)

Half Year Report 07

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08

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3.5% 23.4%

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Half Year Report 09

7.2%

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7.2%
Rs. in Million
100,000
87,418
83,971
80,000
60,000
40,000
20,618 16,284
20,000 13,737
8,067 6,268
0 1,373
Sales Gross profit Profit from operations Net Profit
Half year ended December 31, 2025 Half year ended December 31, 2024
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3.5%

10

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35.5%

8.9%

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Half Year Report

11

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.

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

Half Year Report

13

UNCONSOLIDATED CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION As at December 31, 2025

		Un audited		Audited
		December 31,		June 30,
		2025		2025
	Note	(Rupees in ‘000)		(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		2,638,201		1,897,224
Deposit, prepayments and other
receivables		346,785		296,554
Derivative fnancial instruments		1,026,547		–
Accrued income		1,005		877
Refunds due from Government and
statutory authorities		8,624,620		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

14

		Un audited		Audited
		December 31,		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
share capital	9	14,017,095		14,017,095
Capital reserves		3,158,734		3,158,734
Revenue reserve – unappropriated proft		42,913,907		38,047,206
		60,089,736		55,223,035
NON CURRENT LIABILITIES
Long term fnancing	10	23,679,271		28,593,987
Lease liabilities		148,158		166,688
Deferred liabilities		15,466,467		14,323,587
		39,293,896		43,084,262
CURRENT LIABILITIES
Trade and other payables		18,022,692		15,033,780
Unclaimed dividend		3,052		3,112
Derivative fnancial 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.

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Chief Executive Officer

Chief Financial Officer

Director

Half Year Report 15

UNCONSOLIDATED CONDENSED INTERIM STATEMENT OF PROFIT OR LOSS

For The Quarter and Half Year Ended December 31, 2025

Note	Quarter Ended Un audited Un audited December 31, December 31, 2025 2024 (Rupees in ‘000)	Half Year Ended
		Un audited Un audited December 31, December 31, 2025 2024 (Rupees in ‘000)
Sales – net 43,644,12542,336,01787,418,48283,970,836 Cost of sales 12 (33,208,721)(33,810,028)(66,800,137)(67,686,520)
Gross proft 10,435,404 8,525,98920,618,34516,284,316 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
Proft from operations 7,496,0594,346,46713,736,7278,067,442 Finance cost (1,663,823)(2,699,078)(3,361,404) (5,550,101)
Proft before levies and income tax 5,832,236 1,647,38910,375,323 2,517,341 Levies –(428,405) – (998,375)
Proft before income tax 5,832,236 1,218,98410,375,323 1,518,966 Income tax (2,361,259) (68,645)(4,106,913) (146,349)
Proft for the period 3,470,977 1,150,3396,268,410 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.

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Chief Executive Officer

Chief Financial Officer

Director

16

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 December 31, December 31, 2025 2024 (Rupees in ‘000)	Un audited Un audited December 31, December 31, 2025 2024 (Rupees in ‘000)
Proft for the period Other comprehensive income	3,470,977 1,150,339 – –	6,268,410 1,372,617 – –
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.

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Chief Executive Officer

Chief Financial Officer Half Year Report 17

Director

UNCONSOLIDATED CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY For The Half Year Ended December 31, 2025

	Share Capital	Capital Revenue Reserve Reserve Share Unappropriated Total Premium Proft
		(Rupees in ‘000)
Balance as at July 01, 2024 – Audited 14,017,095 Proft for the period – Other comprehensive income for the period – Total comprehensive income for the period – Transactions with owners: Final cash dividend @ Rs. 2.5 per share for the year ended June 30, 2024 –	14,017,095	3,158,734 36,356,646 53,532,475 – 1,372,617 1,372,617 – – – – 1,372,617 1,372,617 – (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 Proft for the period – Other comprehensive income for the period – Total comprehensive income for the period – Transactions with owners: Final cash dividend @ Re. 1 per share for the year ended June 30, 2025 –		3,158,734 38,047,206 55,223,035 – 6,268,410 6,268,410 – – – – 6,268,410 6,268,410 – (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.

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Chief Executive Officer

Chief Financial Officer

Director

18

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
	Proft before levies and income tax		10,375,323		2,517,341
	Adjustments for:
	Depreciation on operating fxed 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’ proft 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 fnancial instruments Realized gain on derivative fnancial instruments		(1,026,547) (639,628)		(180,681) (218,441)
	Unrealized gain on investment in mutual funds		(705)		–
	Proft on investments in TFCs		(32,066)		(50,110)
	Finance cost		3,361,404		5,550,101
	Operating cash fows before working capital changes		18,670,782		13,150,005
	Changes in working capital
	(Increase) / decrease in current assets
	Stores and spares		(424,847)		(247,566)
	Stock in trade		(4,351,862)		(5,865,080)
	Trade debts		3,989,826		(6,879,253)
	Loans and advances		(725,840)		(1,565,882)
	Deposit, prepayments and other receivables		(50,231)		(24,829)
	Refunds due from Government and statutory authorities		1,419,590		(3,056,612)
	Short term investment in mutual funds – net		(2,720,000)		–
	Increase in current liabilities
	Trade and other payables		2,798,108		169,931
			(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’ proft 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 fnancial 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)

Half Year Report 19

			Un audited	Un audited
			December 31,	December 31,
			2025	2024
			(Rupees in ‘000)	(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
	Proft 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 fnancing obtained Repayment of long term fnancing		573,008 (6,113,605)	9,045,034 (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 fnancing activities		(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.

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Chief Executive Officer

Chief Financial Officer

Director

20

NOTES TO THE UNCONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS For The Half Year Ended December 31, 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:

• 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.

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

Half Year Report

21

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 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.

	2025.
			Un audited		Audited
			December 31,		June 30,
			2025		2025
		Note	(Rupees in ‘000)		(Rupees in ‘000)
5.	PROPERTY, PLANT AND EQUIPMENT
	Operating fxed 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	Operating fxed assets
	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

22

			Un audited	Audited
			December 31,	June 30,
			2025	2025
		Note	(Rupees in ‘000)	(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
	Offce equipment		198,808	752,343
	Electric installations		772,230	2,790,561
	Furniture and fxtures		134,824	968,754
	Vehicles		357,673	913,940
			4,873,807	33,341,979
5.2	Capital work in progress
	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)
6.	LONG TERM INVESTMENT
	Unquoted equity – at cost
	Subsidiary company
	Top Circle Hosiery Mills Co., Inc.	6.1	1,727,763	1,727,763

• 6.1 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.

Half Year Report 23

	Un audited	Audited
	December 31,	June 30,
	2025	2025
Note	(Rupees in ‘000)	(Rupees in ‘000)

7.	TRADE DEBTS
	Foreign
	– Secured		13,075,764		13,475,660
	– Unsecured	7.1	29,773,584		33,156,592
			42,849,348		46,632,252
	Local
	– Unsecured	7.1	1,475,678		1,682,600
			44,325,026		48,314,852

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

8. 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

9. 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	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

24

		Un audited	Audited
		December 31,	June 30,
		2025	2025
		(Rupees in ‘000)	(Rupees in ‘000)
10.	LONG TERM FINANCING
	From fnancial institutions – secured
	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	(6,113,605)	(4,275,343)
	Less: Effect of adjustment of
	Government grant	14,079	31,149
		25,478,934	31,005,452
	Less: Current portion of long term fnancing	(1,799,663)	(2,411,465)
		23,679,271	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 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.

Half Year Report

25

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.

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

		Un audited	Audited
		December 31,	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	1,612,353	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

26

	Quarter Ended Un audited Un audited December 31, December 31, 2025 2024 (Rupees in ‘000)	Half Year Ended
		Un audited Un audited December 31, December 31, 2025 2024 (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 Depreciation on right of use assets Amortization of intangible assets Rent, rate and taxes Other manufacturing costs	18,661,575 19,728,590 937,138 981,134 512,278 1,406,210 8,326,099 7,322,981 867,208 793,494 2,395,108 2,316,206 170,024 245,307 53,097 55,369 1,646,709 1,479,024 23,285 24,770 85 107 10,178 10,268 91,777 100,580	37,514,051 40,518,064 1,861,196 1,942,109 1,390,868 3,408,345 16,424,616 14,573,096 1,734,359 1,572,914 5,220,711 5,137,026 396,017 413,087 104,232 107,669 3,257,790 2,730,281 49,548 49,499 170 213 29,584 20,583 212,697 159,480
Work in process Opening balance Closing balance	33,694,56134,464,040 5,406,478 4,815,630 (5,809,212) (4,578,557) (402,734) 237,073	68,195,839 70,632,366 5,012,176 4,466,813 (5,809,212) (4,578,557) (797,036) (111,744)
Cost of goods manufactured Finished goods Opening balance Closing balance	33,291,827 34,701,113 8,862,510 9,211,866 (8,945,616) (10,102,951) (83,106) (891,085)	67,398,803 70,520,622 8,346,950 7,268,849 (8,945,616) (10,102,951) (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 Report 27

		Half Year Ended	Half Year Ended
		Un audited	Un audited
Name	Nature of transaction	December 31,	December 31,
		2025	2024
	(Rupees in ‘000)		(Rupees in ‘000)
Interloop Holdings (Pvt) Limited – AssociateServices 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	–	13,908
	Services received	213,027	–
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 (Pvt) Limited – Associate	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 benefts	3,543,626	3,572,715
	Rent expenses	439	942
	Repayment of housing fnance loan Markup on housing fnance loan	– –	1,154 52
	Dividend paid	1,036,602	2,955,774
	Directorship fee	14,350	12,414

28

Un audited Audited December 31, 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 1,727,763 1,727,763 Bank balances 32,180 26,894 Liabilities: Financing as per Islamic mode Long term fnancing 16,059,811 18,138,353 Short term borrowings 18,750,767 14,805,000 Accrued mark up as per conventional mode Long term fnancing 176,697 282,437 Short term borrowings 124,005 32,480 STATEMENTOF PROFITOR LOSS Revenue earned from a shariah compliant business 87,418,482 173,381,533 Mark up on Islamic mode of fnancing (1,366,067) (3,156,998) Source and detailed break up of other income Other income earned from shariah compliant: Exchange gain – net 13,873 3,698 Scrap sales 125 268 Other income earned from non – shariah compliant: Dividend income – 22,927 Realized gain on derivative fnancial instruments 639,628 288,794 Unrealized gain on derivative fnancial instruments 1,026,547 – Proft on term fnance certifcates (TFCs) 32,066 84,058 Unrealized gain on investment in mutual funds 705 –

Half Year Report 29

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 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) Denim

This segment mainly relates to sale of garments.

c) Apparel

This segment relates to the sale of fashion apparels.

d) Other operating segments

This 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 includes spinning, energy, yarn dyeing and active wear.

30

Hosiery Denim Apparel Others Elimination of Inter Total Segments segment transaction Company	Un audited Un audited Un audited Un audited Un audited Un audited	December December December December December December December December December December December December 31, 2025 31, 2024 31, 2025 31, 2024 31, 2025 31, 2024 31, 2025 31, 2024 31, 2025 31, 2024 31, 2025 31, 2024	Rupees in ‘000 Rupees in ‘000 Rupees in ‘000 Rupees in ‘000 Rupees in ‘000 Rupees in ‘000	Sales – net External sale 56,840,375 57,719,640 11,279,479 10,577,857 13,942,556 9,479,036 5,356,072 6,194,303 – –87,418,482 83,970,836 Intersegment sale 31,734 13,056 6,516 7,115 90,854 85,873 11,290,886 11,489,797 (11,419,990) (11,595,841) – – 56,872,109 57,732,696 11,285,995 10,584,972 14,033,410 9,564,909 16,646,958 17,684,100 (11,419,990) (11,595,841) 87,418,482 83,970,836 Cost of sales (37,474,902) (41,145,023) (9,832,196) (9,655,634)(15,088,752) (12,095,632) (15,824,277)(16,386,072) 11,419,990 11,595,841(66,800,137)(67,686,520)	Gross proft/(loss) 19,397,207 16,587,673 1,453,799 929,338 (1,055,342) (2,530,723) 822,681 1,298,028 – –20,618,345 16,284,316 Distribution costs (1,743,956) (2,163,826) (408,032) (601,383) (437,055) (614,952) (116,897) (105,024) – –(2,705,940) (3,485,185) Administrative expenses (3,736,726) (3,399,979) (367,899) (355,276) (732,394) (681,794) (200,396) (187,537) – – (5,037,415) (4,624,586) (5,480,682) (5,563,805) (775,931) (956,659) (1,169,449) (1,296,746) (317,293) (292,561) – – (7,743,355) (8,109,771)	Proft/(loss) before taxation and unallocated income and expenses 13,916,525 11,023,868 677,868 (27,321) (2,224,791) (3,827,469) 505,388 1,005,467 – –12,874,990 8,174,545 Unallocated income and expenses Other operating expenses (851,207) (556,697) Other income 1,712,944 449,594 Finance cost (3,361,404) (5,550,101) Levies – (998,375) Income tax (4,106,913) (146,349) Proft for the period 6,268,410 1,372,617 Depreciation and amortization 1,324,507 1,179,712 248,131 251,224 1,373,353 1,323,243 884,660 468,146 – – 3,830,651 3,222,325

Half Year Report 31

Hosiery 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 December June December June December June December June December June December June 31, 2025 30, 2025 31, 2025 30, 2025 31, 2025 30, 2025 31, 2025 30, 2025 31, 2025 30, 2025 31, 2025 30, 2025	Rupees in ‘000 Rupees in ‘000 Rupees in ‘000 Rupees in ‘000 Rupees in ‘000 Rupees in ‘000	Total assets for reportable segment 77,560,512 82,833,908 19,264,320 17,632,030 42,189,950 40,637,874 25,778,211 21,394,327 13,818,270 14,228,517 178,611,263176,726,656	Total liabilities for reportable segment 47,553,154 51,357,794 3,679,271 3,018,280 5,082,767 3,756,205 2,922,836 2,516,206 59,283,499 60,855,136 118,521,527 121,503,621	Segment capital expenditures 1,158,000 14,065,201 1,093,275 2,274,748 460,381 1,680,042 978,438 3,678,437 – – 3,690,094 21,698,428

Un-audited Un-audited December December 31, 2025 31, 2024	Rupees in ‘000 Foreign countries 83,263,14278,492,040 Pakistan 4,155,340 5,478,796 87,418,482 83,970,836

32

16. FINANCIAL RISK MANAGEMENT

16.1 Financial risk factors

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 during the period since June 30, 2025 except those specifically mentioned. Consequently these unconsolidated condensed interim financial statements do not include all the financial risk management information and disclosures required in the annual financial statements.

16.2 Fair value measurements of financial instruments

Fair value is defined as the price that would be received to sell an asset or paid to settle 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: The fair value of financial instruments traded in active markets (such as publicly traded equity securities) is based on quoted (unadjusted) market prices at the end of the reporting period. The quoted market price used for financial assets held by the Company is the current bid price. These instruments are included in Level 1.

Level 2: The fair value of financial instruments that are not traded in an active market (for example over–the counter derivatives) is determined using valuation techniques which maximize the use of observable market data and rely as little as possible on entity specific estimates. If all significant inputs required to determine fair value of an instrument are observable, the instrument is included in Level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the case for unlisted equity instruments.

Half Year Report

33

The following table presents the Company’s significant financial assets and liabilities measured and recognized at fair value at December 31, 2025 on a recurring basis:

	Un audited
	December 31, 2025
	Level 1 Level 2 Level 3 Total Rupees in ‘000
Financial assets
Trading derivatives	– 1,026,547 – 1,026,547
	– 1,026,547 – 1,026,547
	Audited
	June 30, 2025
	Level 1 Level 2 Level 3 Total Rupees in ‘000
Financial liabilities
Trading derivatives	– 13,056 – 13,056
	– 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.

17. EVENT AFTER THE BALANCE SHEET DATE

The Board of Directors in their meeting held on February 04, 2026 have approved an interim cash dividend of Rs. 2 per share (December 31, 2024: Nil), amounting to Rs. 2,803.42 million (December 31, 2024: Nil) in respect of six months ended December 31, 2025. These unconsolidated condensed interim financial statements for the six months ended December 31, 2025 do not include the effect of the above interim dividend which will be accounted for in the period in which it is approved.

34

18. GENERAL

18.1 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.

18.2 Rounding

Figures have been rounded off to the nearest thousand rupees.

19. DATE OF AUTHORIZATION FOR ISSUE

These unconsolidated condensed interim financial statements were authorized for issue on February 04, 2026 by the Board of Directors of the Company.

==> picture [40 x 29] intentionally omitted <==

==> picture [50 x 24] intentionally omitted <==

==> picture [30 x 35] intentionally omitted <==

Chief Executive Officer

Chief Financial Officer Half Year Report 35

Director

CONSOLIDATED 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 CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS

INTRODUCTION

We have reviewed the accompanying consolidated condensed interim statement of financial position of Interloop Limited (“the Holding Company”) as at December 31, 2025 and the related consolidated condensed interim statement of profit or loss, consolidated condensed interim statement of comprehensive income, consolidated condensed interim statement of changes in equity, consolidated condensed interim statement of cash flows, and notes to the consolidated condensed interim financial statements for the six-month period then ended (here-in-after referred to as the consolidated condensed interim financial statements). Management is responsible for the preparation and presentation of these consolidated 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 consolidated condensed interim statement of profit or loss and the consolidated 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 consolidated 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.

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PLACE: FAISALABAD KRESTON HYDER BHIMJI & CO. DATE: February 04, 2026 CHARTERED ACCOUNTANTS UDIN: RR202510199a3KufHECi

Half Year Report 37

CONSOLIDATED CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION As at December 31, 2025

		Un audited		Audited
		December 31,		June 30,
		2025		2025
	Note	(Rupees in ‘000)		(Rupees in ‘000)
ASSETS
NON CURRENT ASSETS
Property, plant and equipment	6	83,715,692		84,050,845
Intangible assets		473,514		485,463
Long term investment		156,671		198,017
Long term loans		203,378		198,075
Long term deposits		159,011		95,481
		84,708,266		85,027,881
CURRENT ASSETS
Stores and spares		3,901,110		3,476,263
Stock in trade		30,708,883		26,714,281
Trade debts	7	45,017,639		49,388,925
Loans and advances		2,920,287		2,371,977
Deposit, prepayments and other
receivables		638,776		720,788
Derivative fnancial instruments		1,026,547		–
Accrued income		1,005		877
Refunds due from Government and
statutory authorities		8,624,620		11,538,248
Short term investments		3,220,705		500,000
Cash and bank balances		1,057,231		1,088,334
		97,116,803		95,799,693
TOTAL ASSETS		181,825,069		180,827,574

38

		Un audited		Audited
		December 31,		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
share capital	9	14,017,095		14,017,095
Reserves		3,161,931		3,130,793
Unappropriated proft		43,590,598		38,960,121
Equity attributable to owners of
parent company		60,769,624		56,108,009
Non – controlling interest		1,354,302		1,469,665
		62,123,926		57,577,674
NON CURRENT LIABILITIES
Long term fnancing	10	23,679,271		28,593,987
Lease liabilities		254,102		312,429
Deferred liabilities		15,466,467		14,323,587
		39,399,840		43,230,003
CURRENT LIABILITIES
Trade and other payables		19,096,364		16,515,419
Unclaimed dividend		3,052		3,112
Derivative fnancial instruments		–		13,056
Accrued mark up		631,347		1,022,221
Short term borrowings		58,652,261		59,948,702
Current portion of non current liabilities		1,918,279		2,517,387
		80,301,303		80,019,897
CONTINGENCIES AND COMMITMENTS	11	–		–
TOTAL EQUITY AND LIABILITIES		181,825,069		180,827,574

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

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Half Year Report 39

CONSOLIDATED CONDENSED INTERIM STATEMENT OF PROFIT OR LOSS

For The Quarter and Half Year Ended December 31, 2025

Note	Quarter Ended Un audited Un audited December 31, December 31, 2025 2024 (Rupees in ‘000)	Half Year Ended
		Un audited Un audited December 31, December 31, 2025 2024 (Rupees in ‘000)
Sales – net 45,191,15044,602,76090,393,40287,348,950 Cost of sales 12 (34,604,119)(35,655,387)(69,286,760)(70,261,505)
Gross proft 10,587,031 8,947,37321,106,64217,087,445 Operating expenses Distribution costs (1,341,600)(1,862,229)(2,960,605)(3,759,590) Administrative expenses (2,824,481)(2,671,327)(5,587,642)(5,104,672) Other operating expenses (265,219) (349,423) (872,657) (591,922) (4,431,300)(4,882,979)(9,420,904)(9,456,184) Other income 1,002,999 292,087 1,709,918 569,717
Proft from operations 7,158,730 4,356,48113,395,6568,200,978 Finance cost (1,665,792)(2,705,672)(3,368,532)(5,566,065)
Proft before levies and income tax 5,492,938 1,650,80910,027,124 2,634,913 Levies –(428,405) – (998,375)
Proft before income tax 5,492,938 1,222,40410,027,124 1,636,538 Income tax (2,336,080) (73,822)(4,127,814) (153,473)
Proft for the period 3,156,858 1,148,5825,899,310 1,483,065
Attributable to: Shareholders of parent company3,269,941 1,149,2156,032,186 1,443,304 Non – controlling interest (113,083) (633) (132,876) 39,761
3,156,858 1,148,5825,899,310 1,483,065
Earnings per share – basic and diluted (Rupees) 2.33 0.82 4.30 1.06

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

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40

CONSOLIDATED 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 December 31, December 31, 2025 2024 (Rupees in ‘000)	Un audited Un audited December 31, December 31, 2025 2024 (Rupees in ‘000)
Proft for the period 3,156,858 1,148,582 Other comprehensive income/ (loss) Items that will be reclassifed subsequently to proft or loss: Exchange difference on translation of foreign operations 58,839 (140,958)		5,899,310 1,483,065 48,651 (15,537)
Total comprehensive income for the period 3,215,697 1,007,624		5,947,961 1,467,528
Attributable to: Shareholders of parent company 3,307,600 1,059,001 Non – controlling interest (91,903) (51,377)		6,063,324 1,433,360 (115,363) 34,168
3,215,697 1,007,624		5,947,961 1,467,528

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

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Chief Financial Officer Half Year Report 41

Director

CONSOLIDATED CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY For The Half Year Ended December 31, 2025

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 – – 1,443,304 – 1,443,304 39,761 1,483,065 Other comprehensive loss for the period – – – (9,944) (9,944) (5,593) (15,537) Total comprehensive income for the period – – 1,443,304 (9,944) 1,433,360 34,168 1,467,528 Transactions with owners: Final cash dividend @ Rs. 2.5 per share for the year ended June 30, 2024 – – (3,504,274) – (3,504,274) – (3,504,274)	Balance as at December 31, 2024 (Un–audited) 14,017,095 3,158,734 35,035,393 (120,672) 52,090,550 1,359,840 53,450,390	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/(loss) for the period – – 6,032,186 – 6,032,186 (132,876) 5,899,310 Other comprehensive income for the period – – – 31,138 31,138 17,513 48,651 Total comprehensive income/(loss) for the period – – 6,032,186 31,138 6,063,324 (115,363) 5,947,961 Transactions with owners: Final cash dividend @ Re. 1 per share for the year ended June 30, 2025 – – (1,401,709) – (1,401,709) – (1,401,709)	Balance as at December 31, 2025 (Un–audited) 14,017,095 3,158,734 43,590,598 3,197 60,769,624 1,354,302 62,123,926	The annexed notes from 1 to 19 form an integral part of these consolidated condensed interim fnancial statements. Chief Executive Offcer Director Chief Financial Offcer

42

CONSOLIDATED 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
	Proft before levies and income tax	10,027,124		2,634,913
	Adjustments for:
	Depreciation on operating fxed assets	3,850,603		3,240,396
	Depreciation on right of use assets	92,385		102,231
	Amortization of intangible assets	38,331		36,450
	Workers’ proft 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		132,092
	Loss on disposal of investment	6,007		–
	Exchange loss/(gain) – net	15,443		(45,721)
	Provision for obsolete inventory	54,275		197,248
	Unrealized gain on derivative fnancial instruments Realized gain on derivative fnancial instruments	(1,026,547) (639,628)		(180,681) (218,441)
	Unrealized gain on investment in mutual funds	(705)		–
	Proft on investments in TFCs	(32,066)		(50,110)
	Reversal of impairment	–		(69,582)
	Finance cost	3,368,532		5,566,065
	Operating cash fows before working capital changes	18,515,701		13,324,108
	Changes in working capital
	(Increase) / decrease in current assets
	Stores and spares	(424,847)		(247,566)
	Stock in trade	(4,048,877)		(5,893,871)
	Trade debts	4,371,286		(8,310,046)
	Loans and advances	(533,173)		(1,817,056)
	Deposit, prepayments and other receivables	82,012		167,846
	Refunds due from Government and statutory authorities	1,419,590		(3,056,612)
	Short term investment in mutual funds – net	(2,720,000)		–
	Increase in current liabilities
	Trade and other payables	2,390,140		1,603,997
		536,131		(17,553,308)
	Cash generated from/(used in) operations	19,051,832		(4,229,200)
	Finance cost paid	(3,725,612)		(7,165,356)
	Income tax paid	(2,657,988)		(1,929,167)
	Staff retirement gratuity paid	(803,319)		(386,698)
	Workers’ proft 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 fnancial instruments Exchange (loss)/gain – net	639,628 (573)		218,441 106,962
	Net cash generated from/(used in) operating activities	11,827,595		(14,435,188)

Half Year Report 43

			Un audited	Un audited
			December 31,	December 31,
			2025	2024
			(Rupees in ‘000)	(Rupees in ‘000)
**b) **	CASH FLOWS FROM INVESTING ACTIVITIES
	Additions in:
	Property, plant and equipment		(3,714,506)	(9,604,799)
	Intangible assets		(26,306)	(29,242)
	Proceeds from disposal of non current assets		159,620	164,135
	Changes in long term investment		35,340	876
	Proft received from investments in TFCs		31,938	50,474
	Net cash used in investing activities		(3,513,914)	(9,418,556)
c)	CASH FLOWS FROM FINANCING ACTIVITIES
	Long term fnancing obtained Repayment of long term fnancing		573,008 (6,113,605)	9,045,034 (1,328,142)
	Payment of lease rentals		(105,977)	(125,716)
	Short term borrowings – net		(1,296,441)	19,473,444
	Dividend paid		(1,401,769)	(3,503,895)
	Net cash (used in)/generated from fnancing activities		(8,344,784)	23,560,725
	Net decrease in cash and cash
	equivalents	(a+b+c)	(31,103)	(293,019)
	Cash and cash equivalents at beginning
	of the period		1,088,334	1,510,910
	Cash and cash equivalents at end of the period		1,057,231	1,217,891

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

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44

NOTES TO THE CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS

For The Half Year Ended December 31, 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% (June 30, 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 located 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:

• 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.

Half Year Report

45

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 consolidated condensed interim financial statements have been subjected to limited scope review by the auditors, as required under section 237 of Companies Act, 2017. These consolidated 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 annual audited financial statements of the Group for the year ended June 30, 2025.

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 condensed interim 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.

46

5. MATERIAL ACCOUNTING POLICY INFORMATION

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

			Un audited		Audited
			December 31,		June 30,
			2025		2025
		Note	(Rupees in ‘000)		(Rupees in ‘000)
6.	PROPERTY, PLANT AND EQUIPMENT
	Operating fxed assets	6.1	75,274,477		74,380,911
	Capital work in progress	6.2	8,124,462		9,304,294
	Right of use assets		316,753		365,640
			83,715,692		84,050,845
6.1	Operating fxed assets
	Cost
	Opening balance		107,180,877		74,600,451
	Additions during the period/year	6.1.1	4,894,338		33,381,181
	Disposals during the period/year		(364,679)		(858,695)
	Exchange loss		20,472		57,940
	Closing balance		111,731,008		107,180,877
	Accumulated depreciation
	Opening balance		32,799,966		26,192,911
	Depreciation expense for the period/year		3,850,603		7,051,589
	Adjustment during the period/year		(194,038)		(444,534)
	Closing balance		36,456,531		32,799,966
	Written down value		75,274,477		74,380,911
6.1.1	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		2,617,970		19,731,509
	Tools and equipment		339,528		1,747,444
	Offce equipment		202,741		755,673
	Electric installations		772,230		2,790,561
	Furniture and fxtures		134,824		968,754
	Vehicles		357,673		911,828
			4,894,338		33,381,181

Half Year Report 47

			Un audited	Audited
			December 31,	June 30,
			2025	2025
		Note	(Rupees in ‘000)	(Rupees in ‘000)
6.2	Capital work in progress
	Civil works		2,379,704	1,952,364
	Plant and machinery		3,645,339	5,105,314
	Capital stores	6.2.1	1,369,163	1,467,218
	Advances to suppliers		730,256	779,398
			8,124,462	9,304,294

• 6.2.1 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.

	capitalization.
			Un audited		Audited
			December 31,		June 30,
			2025		2025
		Note	(Rupees in ‘000)		(Rupees in ‘000)
7.	TRADE DEBTS
	Foreign
	– Secured		13,075,764		13,475,660
	– Unsecured	7.1	30,466,197		34,230,665
			43,541,961		47,706,325
	Local
	– Unsecured	7.1	1,475,678		1,682,600
			45,017,639		49,388,925

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

8. 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

48

9. ISSUED, SUBSCRIBED AND PAID UP SHARE CAPITAL

	Un audited	Audited			Un audited	Un audited	Un 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	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
				December 31,					June 30,
					2025				2025
				(Rupees in ‘000)				(Rupees in ‘000)
10.	LONG TERM FINANCING
	From fnancial institutions – secured
	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		(6,113,605)					(4,275,343)
	Less: Effect of adjustment of
	Government grant				14,079				31,149
				25,478,934					31,005,452
	Less: Current portion of long term fnancing			(1,799,663)					(2,411,465)
				23,679,271				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.

Half Year Report

49

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.

50

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

11.1.2	Bank guarantees issued by various banks on	behalf of the Gr	oup in favour of:
		Un audited	Audited
		December 31,	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	1,612,353	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	622,930
	Raw material	1,923,859	2,972,579
	Stores and spares	116,602	207,293
		3,648,415	3,802,802

Half Year Report 51

	Quarter Ended Un audited Un audited December 31, December 31, 2025 2024 (Rupees in ‘000)	Half Year Ended
		Un audited Un audited December 31, December 31, 2025 2024 (Rupees in ‘000)
12. COST OF SALES Raw material consumed 19,765,496 21,316,577 Stores and spares consumed 947,710 992,789 Knitting, processing and packing charges 454,356 1,446,345 Salaries, wages and benefts 8,428,016 7,418,772 Staff retirement gratuity 867,208 793,494 Fuel and power 2,425,249 2,347,088 Repairs and maintenance 170,459 250,955 Insurance 53,097 55,369 Depreciation on operating fxed assets 1,683,552 1,512,014 Depreciation on right of use assets 38,576 38,948 Amortization of intangible assets 85 107 Rent, rate and taxes 10,189 10,268 Other manufacturing costs 99,112 100,582		39,789,830 42,491,685 1,880,939 1,955,867 897,134 3,477,067 16,626,963 14,769,996 1,734,359 1,572,914 5,295,157 5,210,245 396,827 428,628 104,232 107,669 3,330,461 2,800,350 79,903 83,307 170 213 32,802 20,583 219,718 159,481
34,943,105 36,283,308 Work in process Opening balance 5,558,955 4,855,696 Closing balance (5,964,330) (4,646,039) (405,375) 209,657		70,388,495 73,078,005 5,196,278 4,523,957 (5,964,330) (4,646,039) (768,052) (122,082)
Cost of goods manufactured 34,537,730 36,492,965 Finished goods Opening balance 9,207,073 9,464,852 Closing balance (9,140,684)(10,302,430) 66,389 (837,578)		69,620,443 72,955,923 8,807,001 7,608,012 (9,140,684)(10,302,430) (333,683) (2,694,418)
34,604,119 35,655,387		69,286,760 70,261,505

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 during the period are as follows:

52

		Half Year Ended	Half Year Ended
		Un audited	Un audited
Name	Nature of transaction	December 31,	December 31,
		2025	2024
	(Rupees 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	–	13,908
	Services received	213,027	–
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 (Pvt) Limited – Associate	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
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 benefts	3,597,186	3,572,715
	Rent expenses	439	942
	Repayment of housing fnance loan Markup on housing fnance loan	– –	1,154 52
	Dividend paid	1,036,602	2,955,774
	Directorship fee	14,350	12,414

Half Year Report 53

Un audited Audited December 31, June 30, 2025 2025 (Rupees in ‘000) (Rupees in ‘000)

14.

SHARIAH COMPLIANCE DISCLOSURE Assets: Shariah compliant investments and bank deposits/bank balances Long term investment 156,671 198,017 Bank balances 32,180 26,894 Liabilities: Financing as per Islamic mode Long term fnancing 16,059,811 18,138,353 Short term borrowings 18,750,767 14,805,000 Accrued mark up as per conventional mode Long term fnancing 176,697 282,437 Short term borrowings 124,005 32,569 STATEMENTOF PROFITOR LOSS Revenue earned from a shariah compliant business 90,393,402 179,405,283 Mark up on Islamic mode of fnancing (1,366,067) (3,156,998) Source and detailed break up of other income Other income earned from shariah compliant: Exchange gain – net – 130,762 Scrap sales 125 7,827 Other income earned from non – shariah compliant: Dividend income – 22,927 Realized gain on derivative fnancial instruments 639,628 288,794 Unrealized gain on derivative fnancial instruments 1,026,547 – Proft on term fnance certifcates (TFCs) 32,066 84,058 Unrealized gain on investment in mutual funds 705 – Government subsidy 10,847 –

54

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) Denim

This segment mainly relates to sale of garments.

c) Apparel

This segment relates to the sale of fashion apparels.

d) 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 includes spinning, energy, yarn dyeing, active wear and other subsidiaries.

Half Year Report

55

Hosiery Denim Apparel Others Elimination of Inter Total Segments segment transaction Group	Un audited Un audited Un audited Un audited Un audited Un audited	December December December December December December December December December December December December 31, 2025 31, 2024 31, 2025 31, 2024 31, 2025 31, 2024 31, 2025 31, 2024 31, 2025 31, 2024 31, 2025 31, 2024	Rupees in ‘000 Rupees in ‘000 Rupees in ‘000 Rupees in ‘000 Rupees in ‘000 Rupees in ‘000	Sales – net External sale 56,840,375 57,719,640 11,279,479 10,577,857 13,942,556 9,479,036 8,330,992 9,572,417 – –90,393,402 87,348,950 Intersegment sale 31,734 13,056 6,516 7,115 90,854 85,873 11,864,633 11,489,797 (11,993,737) (11,595,841) – – 56,872,109 57,732,696 11,285,995 10,584,972 14,033,410 9,564,909 20,195,625 21,062,214 (11,993,737) (11,595,841) 90,393,402 87,348,950 Cost of sales (37,474,902) (41,145,023) (9,832,196) (9,655,634)(15,088,752)(12,095,632) (18,884,647)(18,961,057) 11,993,737 11,595,841(69,286,760) (70,261,505)	Gross proft/(loss) 19,397,207 16,587,673 1,453,799 929,338 (1,055,342) (2,530,723) 1,310,978 2,101,157 – – 21,106,642 17,087,445 Distribution costs (1,743,956) (2,163,826) (408,032) (601,383) (437,055) (614,952) (371,562) (379,429) – –(2,960,605) (3,759,590) Administrative expenses (3,736,726) (3,399,979) (367,899) (355,276) (732,394) (681,794) (750,623) (667,623) – –(5,587,642) (5,104,672) (5,480,682) (5,563,805) (775,931) (956,659) (1,169,449) (1,296,746) (1,122,185) (1,047,052) – –(8,548,247) (8,864,262)	Proft/(loss) before taxation and unallocated income and expenses 13,916,525 11,023,868 677,868 (27,321) (2,224,791) (3,827,469) 188,793 1,054,105 – –12,558,395 8,223,183 Unallocated income and expenses Other operating expenses (872,657) (591,922) Other income 1,709,918 569,717 Finance cost (3,368,532) (5,566,065) Levies – (998,375) Income tax (4,127,814) (153,473) Proft for the period 5,899,310 1,483,065 Depreciation and amortization 1,324,507 1,179,712 248,131 251,224 1,373,353 1,323,243 1,035,327 624,898 – – 3,981,318 3,379,077

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Hosiery 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 December June December June December June December June December June December June 31, 2025 30, 2025 31, 2025 30, 2025 31, 2025 30, 2025 31, 2025 30, 2025 31, 2025 30, 2025 31, 2025 30, 2025	Rupees in ‘000 Rupees in ‘000 Rupees in ‘000 Rupees in ‘000 Rupees in ‘000 Rupees in ‘000	Total assets for reportable segment 75,832,749 81,106,145 19,264,320 17,632,030 42,189,950 40,637,874 30,719,78027,223,008 13,818,270 14,228,517181,825,069180,827,574	Total liabilities for reportable segment 47,553,154 50,892,999 3,679,271 3,018,280 5,082,767 3,756,205 4,102,452 4,727,280 59,283,499 60,855,136 119,701,143123,249,900	Segment capital expenditures 1,158,000 14,065,201 1,093,275 2,274,748 460,381 1,680,042 1,029,156 3,927,890 – – 3,740,812 21,947,881	15.3 The Company disaggregated revenue based on geographical locations of its customers: Un-audited Un-audited December December 31, 2025 31, 2024	Rupees in ‘000 Foreign countries 86,238,062 81,870,154 Pakistan 4,155,340 5,478,796 90,393,402 87,348,950

Half Year Report 57

16. FINANCIAL RISK MANAGEMENT

16.1 Financial Risk Factors

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 during the period since June 30, 2025 except those specifically mentioned. Consequently these consolidated condensed interim financial statements do not include all the financial risk management information and disclosures required in the annual financial statements.

• 16.2 Fair value measurements of financial instruments

Fair value is defined as the price that would be received to sell an asset or paid to settle 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: The fair value of financial instruments traded in active markets (such as publicly traded equity securities) is based on quoted (unadjusted) market prices at the end of the reporting period. The quoted market price used for financial assets held by the Group is the current bid price. These instruments are included in Level 1.

Level 2: The fair value of financial instruments that are not traded in an active market (for example over–the counter derivatives) is determined using valuation techniques which maximize the use of observable market data and rely as little as possible on entity specific estimates. If all significant inputs required to determine fair value of an instrument are observable, the instrument is included in Level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the case for unlisted equity instruments.

58

The following table presents the Group’s significant financial assets and liabilities measured and recognized at fair value at December 31, 2025 on a recurring basis:

	Un audited
	December 31, 2025
	Level 1 Level 2 Level 3 Total Rupees in ‘000
Financial assets
Trading derivatives	– 1,026,547 – 1,026,547
	– 1,026,547 – 1,026,547
	Audited
	June 30, 2025
	Level 1 Level 2 Level 3 Total Rupees in ‘000
Financial liabilities
Trading derivatives	– 13,056 – 13,056
	– 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.

17. EVENT AFTER THE BALANCE SHEET DATE

The Board of Directors of the Holding Company in their meeting held on February 04, 2026 have approved an interim cash dividend of Rs. 2 per share (December 31, 2024: Nil), amounting to Rs. 2,803.42 million (December 31, 2024: Nil) in respect of six months ended December 31, 2025. These consolidated condensed interim financial statements for the six months ended December 31, 2025 do not include the effect of the above interim dividend which will be accounted for in the period in which it is approved.

Half Year Report 59

18. GENERAL

18.1 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 consolidated 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.

18.2 Rounding

Figures have been rounded off to the nearest thousand rupees.

19. DATE OF AUTHORIZATION FOR ISSUE

These consolidated condensed interim financial statements were authorized for issue on February 04, 2026 by the Board of Directors of the Holding Company.

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Chief Executive Officer

Chief Financial Officer

Director

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Corporate Office

1KM, Khurrianwala - Jaranwala Road, Khurrianwala, Faisalabad, Pakistan. P : (92) 41 4360 400 F : (92) 41 2428 704 M : externalaffairs@interloop-pk.com

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