KARACHI: Ibrahim Fibres Limited (PSX: IFL) reported a net loss of Rs320.19 million for the first quarter ended March 31, 2026, compared to a net profit of Rs1.08 billion recorded in the same period last year, as weaker margins and rising costs weighed heavily on the company’s earnings.

The company’s net sales increased by 4.2% to Rs28.89 billion, up from Rs27.72 billion in the corresponding quarter of FY2025. However, the increase in revenue was not enough to offset higher production costs, resulting in a sharp decline in profitability.

Gross profit fell significantly to Rs1.33 billion from Rs3.09 billion a year earlier, reflecting substantial pressure on margins. Profit before levy and taxation dropped to Rs53.67 million, compared with Rs1.47 billion in the same quarter last year. After accounting for taxation and levy, the company posted a loss of Rs320.19 million, translating into a loss per share (LPS) of Rs1.03, against earnings per share (EPS) of Rs3.47 in the corresponding period of FY2025.

On the operational front, Ibrahim Fibres’ polyester plant achieved 67% capacity utilization, producing 65,719 tons of polyester staple fibre (PSF), slightly higher than the 63,629 tons produced in the same quarter last year. Meanwhile, the textile division produced 8,547 tons of blended yarns, operating at 51% capacity utilization, compared with 11,680 tons produced in the corresponding period last year.

In its directors’ review, the company attributed the disappointing financial performance to heightened geopolitical tensions, particularly ongoing conflicts in the Middle East, which have created uncertainty in global markets. Management also pointed to increasing dumping of value-added textile products in regional markets, intensifying competitive pressures on Pakistan’s textile industry and negatively affecting the company’s earnings.

Looking ahead, Ibrahim Fibres said economic uncertainty, volatile crude oil prices, and regional security concerns are expected to continue posing challenges. Despite these headwinds, the company plans to improve sales volumes through stronger marketing efforts while focusing on efficient inventory and financial management to enhance future performance.