Karachi: International Knitwear Limited (IKL) has announced its financial results for the third quarter ended March 31, 2026, reporting a sharp decline in quarterly profitability amid lower sales and compressed margins. The company’s Board of Directors approved the unaudited financial statements at its meeting held on April 28, 2026. No cash dividend, bonus shares, or right shares were declared.
During the quarter, the textile manufacturer posted a net profit of Rs595,540, a significant decline from Rs13.18 million recorded in the corresponding period last year. Earnings per share (EPS) also dropped to Rs0.06, compared with Rs1.36 in the same quarter of 2025.
The decline in earnings came as net sales fell to Rs185.31 million, down sharply from Rs323.44 million a year earlier. Gross profit decreased to Rs22.29 million from Rs38.17 million, while operating profit also slipped to Rs11.27 million compared with Rs28.63 million in the same period last year. Higher finance costs continued to weigh on the company’s bottom line despite lower taxation during the quarter.
For the nine-month period ended March 31, 2026, International Knitwear reported a net profit of Rs13.09 million, compared with Rs24.10 million in the corresponding period of the previous year. Earnings per share for the nine months stood at Rs1.35, down from Rs2.49 last year, reflecting the challenging operating environment faced by the company.
Despite weaker earnings, the company’s financial position showed some improvement in liquidity. Cash and bank balances increased to Rs14.66 million at the end of March 2026 from Rs2.65 million at the end of June 2025. Total assets stood at Rs655.07 million, while shareholders’ equity improved to Rs200.17 million.
The Board did not announce any corporate actions alongside the results, indicating that the company will retain its earnings as it navigates ongoing challenges in Pakistan’s textile sector. Investors will likely monitor future quarters for signs of recovery in sales, profitability, and overall business performance.
