Ibrahim Fibres Limited (IBFL) reported earnings per share of PKR 3.00 for CY25, compared to earnings per share of PKR 7.60 in CY24. Furthermore, in 1QCY26, the company reported loss per share of PKR 1.03, compared to earnings per share of PKR 3.47 in the same period last year (SPLY). Polyester staple fibre remains the primary revenue driver, contributing 65%–75% of the overall revenue mix.
The company has an installed production capacity of 390,600 metric tons per annum. The yarn segment contributes 25%–35% of total revenue, with a production capacity of 78,400 metric tons per annum, primarily focused on cotton yarns. High and inconsistent energy tariffs continue to weigh on margins, particularly given the energy intensive nature of PSF manufacturing. Management attributed the decline in turnover and profitability to a surge in yarn imports, dumping from China and other countries, coupled with reduced operating rates across textile spinning units. Management highlighted that textile associations are actively engaging with the government to curb dumping practices that violate WTO rules.
A key concern remains the EFS, under which goods intended for re-export are allegedly being diverted to the domestic market without payment of GST. The company’s peak electricity requirement stands at approximately 40 MW. While current energy sources include gas, coal, and grid supply, management is undertaking R&D on battery storage solutions integrated with solar installation.
This transition is expected to lower energy costs by around 20%. The management is also evaluating diversification opportunities within the polymer value chain, including PET bottle manufacturing, polyester filament yarn, and packaging films. In addition, given Pakistan’s rapidly growing population, the company is assessing opportunities in the food sector and is considering a potential entry.
Management further indicated that recent increases in yarn and polyester prices over the past two months have been successfully passed on to customers. The company currently holds cotton inventory sufficient through September and plans to commence procurement of the new crop from June onward.
Important Disclosures
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