Ibrahim Fibres Limited ('IFL' or 'the Company'), established as a Public Limited Company in 1986, is listed on the Pakistan Stock Exchange (PSX). As of the end of January 2026, the Company's free float stands at ~5.0%. The registered office of the Company is located at Ibrahim Centre, 1-Ahmed Block, New Garden Town, Lahore - 54600, Pakistan.

Incorporated in 1986, Ibrahim Fibres Limited (IFL) is a publicly listed company on the Pakistan Stock Exchange (PSX) and a market leader in Polyester Staple Fiber (PSF) with ~76% market share in locally produced PSF. Over the years, the Company expanded its operations by establishing additional spinning mills and a power generation company, which were later merged into a single entity, Ibrahim Fibres Limited, in 2000. IFL operates one of Pakistan’s largest integrated polyester production facilities, with a diversified portfolio spanning polyester fiber, textile yarn, and power generation. The Company’s strategic focus on vertical integration, operational efficiency, and innovation has driven its long-term growth and industry leadership. With state-of-the-art manufacturing, a strong distribution network, and sustainable business practices, IFL remains a key player in Pakistan’s textile value chain, catering to domestic and international markets.

Ibrahim Fibres Limited specializes in the production and marketing of Polyester Staple Fibre (PSF) and blended yarns. The Company’s manufacturing facilities are strategically located in Shahkot, near Faisalabad. As of the latest available data, Ibrahim Fibres has a total polyester production capacity of approximately 390,600 tons per annum (TPA), while its spinning operations comprise around 240,800 spindles.

The Ibrahim Group maintains a majority ownership stake of ~91.80% in Ibrahim Fibres Limited, primarily through its holding company, Ibrahim Holdings (Private) Limited.

The Ibrahim Group strategically established Ibrahim Holdings (Pvt.) Limited to oversee succession planning and optimize investment management across its subsidiary and associated companies, including Allied Bank Limited. This structured approach enhances corporate governance, ensuring financial stability and long-term sustainability for Ibrahim Fibres Limited.

The sponsors of Ibrahim Fibres Limited possess over five decades of extensive experience in the textile industry, complemented by professional expertise in banking, finance, and the power sector. This diverse industry exposure strengthens the Company’s strategic decision-making and operational resilience.

The Ibrahim Group maintains a robust financial position, with a strong net worth underpinning its business operations. The sponsors have consistently demonstrated both the willingness and capacity to support Ibrahim Fibres Limited, as evidenced by past financial assistance, including an interest-free loan to sustain operations. Additionally, the group holds a majority stake of approximately 90% in Allied Bank Limited, further reinforcing its financial strength and strategic influence in the banking sector.

Ibrahim Fibres Limited is governed by a seven-member Board of Directors as of CY25. After the demise of Mr. Sheikh Mukhtar Ahmad, the board is led by Mr. Mohammad Naeem Mukhtar as Chairperson. The board structure comprises two representatives from the Ibrahim Group, ensuring strategic alignment with the majority shareholders, alongside two independent directors who contribute to enhanced corporate governance, oversight, and regulatory compliance.

Mr. Mohammad Naeem Mukhtar, Chairman of Ibrahim Fibres Limited, bringing over 38 years of in-depth experience in finance, industrial manufacturing, and corporate leadership. In addition to his role at Ibrahim Fibres, Mr. Mukhtar is the CEO of Ibrahim Holdings (Pvt.) Limited and holds directorial positions in several other companies within the Ibrahim Group, contributing his expertise in strategic oversight and organizational growth. The Board of Directors collectively possesses substantial industry expertise and diversified professional experience, with long-standing tenures that reinforce stability and continuity in the Company’s governance. The Board of Directors collectively possesses substantial industry expertise and diversified professional experience, with long-standing tenures that reinforce stability and continuity in the Company’s governance.

To ensure robust oversight, three key committees: Audit, Human Resources, and Nomination, are actively engaged in governance matters. Member participation in meetings remains consistently strong, reflecting a commitment to effective decision-making. Additionally, the Board facilitates a Directors’ Training Program throughout the year, designed to enhance the expertise and strategic acumen of its members, thereby enabling them to fulfill their responsibilities with greater proficiency and impact.

The external auditors of the Company, M/s. Yousuf Adil – Chartered Accountants, have issued an unqualified audit opinion on the financial statements for the period ending December 31st, 2024. Furthermore, it is noteworthy that the Company has transitioned its financial reporting period from a fiscal year to a calendar year. The audit for the calendar year 2025 (CY25) is currently in progress and will be finalized in due course.

Ibrahim Fibres operates with a well-defined, functionally departmentalized organizational structure, meticulously segmented into distinct units, including polyester production facilities, spinning plants, and power generation plants.

Mr. Muhammad Waseem Mukhtar now serves as the Chief Executive Officer (CEO) and Director of the Ibrahim Fibres Limited, having over 36 years of overall experience in finance and industry. He has been a member of the Board of Directors of Allied Bank Limited since 2004, where his strategic guidance has played a key role in the Bank’s technological upgradation. He also serves as a director on the boards of Ibrahim Holdings (Private) Limited, Ibrahim Agencies (Private) Limited, and ABL Asset Management Company Limited. Mr. Mohammad Naeem Asghar, the Chief Financial Officer (CFO) of Ibrahim Fibres, has been a key figure in the company for the past 35 years, with 13 years of dedicated service as CFO. His extensive experience in financial management, coupled with his deep understanding of the Company’s operations, has been instrumental in navigating the financial complexities of the business. The senior management team at Ibrahim Fibres is distinguished by its long-standing tenure and proven track record, reflecting a profound commitment to the Company’s success and sustained growth. Their collective expertise and leadership have played a critical role in the company’s industry leadership and strategic direction.

Senior management conducts meetings on an ad-hoc basis, strategically convening to deliberate on key matters and drive informed decision-making processes.

The Company has implemented robust and seamlessly integrated systems, adopting Oracle as its enterprise resource planning (ERP) solution. This strategic integration enhances operational efficiency, ensures data accuracy, and facilitates real-time decision-making. By leveraging Oracle’s advanced capabilities, the company generates comprehensive, insightful, and data-driven MIS reports, empowering management with valuable analytics for informed strategic planning and performance optimization.

Ibrahim Fibres maintains a dedicated internal audit function to ensure objective oversight and accountability. The Company also boasts a highly skilled quality control department, further supported by its ISO 9002 certification, demonstrating its commitment to maintaining the highest standards of quality.

As of 2025, global polyester fiber production reached ~75.13mln tons, representing 57% of total global fiber output. This reflects a decrease from ~78mln metric tons in 2024, when polyester accounted for 59% of total fiber production, reinforcing its position as the dominant fiber in the global textile industry. Global demand for Polyester Staple Fiber (PSF) is expected to remain favorable, with market projections estimating the PSF sector's size to reach USD 3,024.3mln by 2026. The primary raw materials for PSF, namely Pure Terephthalic Acid (PTA) and Mono Ethylene Glycol (MEG), are derived from crude oil, leading to price fluctuations that contribute to the inherent price volatility of PSF. Consequently, profit margins are heavily influenced by international price trends and exchange rate fluctuations. Notably, over 80% of global PSF production is concentrated in China, India, and Southeast Asia, regions that are also the primary exporters of the product. In CY25, local polyester fiber production reduced to 330,201 tons (CY24: 382,083 tons), contracted by ~13.6% YoY, due to high energy costs and increased imports, which curtailed local production activities. Conversely, PSF imports surged 23.5% YoY in CY25, resulting in a market-share parity where imports now satisfy 50% of total domestic consumption. This escalating import penetration represents a structural headwind, as it significantly dilutes the pricing leverage of domestic manufacturers and increases the sector's exposure to international price volatility. The major reason for gradual increase in imports is the anomaly of Export Facilitation Scheme (EFS) as per the management. Under this scheme, importers are allowed to import polyester duty-free, subject to an export obligation within a one-year period, which can be done directly or in-directly. Upon fulfilling this requirement, they are permitted to import other items without duties. This mechanism effectively results in subsidized raw material imports, enabling beneficiaries to price their finished goods more competitively in export markets. The prevalence of EFS has posed challenges for local producers, as entities operating under the scheme can offer lower-priced products, thereby intensifying market competition.

Pakistan’s Polyester Staple Fiber (PSF) industry is primarily dominated by three key players: Ibrahim Fibres Limited (IFL), Lucky Core Industries Limited, and Rupali Polyester. The Company dominates the local PSF production with a commanding 76% share, followed by Lucky Core Industries (24%) and Rupali Polyester (0.13%). While, the Company’s share in total local PSF consumption moderated to ~38.5% in CY25 (CY24: ~41.1%), reflecting a broader shift in market supply dynamics. IFL’s market dominance is driven by its large-scale production capacity, advanced manufacturing technology, and vertically integrated operations, allowing it to achieve cost efficiencies and supply chain stability. The Company’s extensive customer base, strong distribution network, and focus on quality standards further reinforce its competitive edge. In contrast, competitors operate on a smaller scale, with relatively limited market penetration. With polyester continuing to be the most widely used synthetic fiber, IFL remains well-positioned to capitalize on future growth opportunities, benefiting from its strong industry presence, financial resilience, and strategic expansion plans.

During 9MCY25, Ibrahim Fibres Limited (IFL) reported net sales of PKR 78.237bln, representing an annualized decline of ~13.6% relative to CY24 (PKR 120.67bln). This decline was driven by a dual-sided pressure of volumetric decline and softening average sales price, largely driven by the influx of lower-priced imports and subdued downstream demand in the broader textile sector. The Company’s revenue profile was heavily anchored by its PSF segment, which contributed ~73% of total sales in CY25, while the spinning segment accounted for ~27%. IFL’s diversified revenue mix, operational efficiency, and strategic pricing approach supports its resilience and stable performance amid evolving industry conditions.

During the period CY24, the Company’s gross margins stood at ~8.1% (CY23: ~7.5%) and the operating margins were recorded at ~5.4% in CY24 (CY23: ~5.0%). The Company’s net profit margin was appreciated to 2.0% in CY24 (CY23: 0.3%). In 9MCY25, the Company’s margins remained intact, where gross, operating, and net profit margin stood at ~8.3%, ~5.2%, and ~2.0%, respectively.

Ibrahim Fibres Limited remains a financially robust and strategically agile entity, well-equipped to sustain long-term growth. While expansion plans are currently on hold pending industry stabilization, the Company’s strong forecasting and budgeting framework provides a solid foundation for navigating economic uncertainties. Additionally, IFL benefits from a well-diversified product portfolio, encompassing Polyester Staple Fiber (PSF), spinning, and power generation segments, which collectively enhance revenue stability and mitigate sector-specific risks. By maintaining a data-driven and risk-mitigated approach, IFL is well-positioned to uphold its market leadership and long-term business viability while capitalizing on evolving industry dynamics.

The Company’s working capital requirements are primarily driven by inventory procurement of key raw materials, including Pure Terephthalic Acid (PTA), Mono Ethylene Glycol (MEG), cotton, and viscose, which are financed through a combination of internal cash generation and short-term borrowings. The Company maintains a historically efficient net working capital cycle with minimal receivables exposure. During 9MCY25, the net working capital cycle increased a bit, with working capital days increasing to 83 days (CY24: 73 days; CY23: 77 days), primarily attributable to increased inventory management.

During 9MCY25, the Company’s Free Cash Flow from Operations (FCFO) stood at PKR 5,350mln (CY24: PKR 8,517mln; CY23: PKR 7,589mln), reflecting an increase attributed to changes in working capital and operating cash flows. The interest coverage ratio improved, reaching 9.2x (CY24: 6.1x; CY23: 5.1x), demonstrating an enhanced capacity to cover interest expenses with operating income. The core coverage ratio remained stable at 3.2x (CY24: 2.9x; CY23: 3.1x), indicating consistent financial performance in relation to its core obligations and operational efficiency.

IFL’s capital structure reflects a low leverage profile, supported by a mix of long-term and short-term borrowings. In CY24, the Company reported a leverage ratio of ~18.7%, with short-term borrowings accounting for ~66.1% of total debt. During 9MCY25, the share of short-term debt declined to ~54.2%, while the leverage ratio increased to ~20.3%. The rise in leverage was driven by higher long-term borrowings undertaken to fund the Company’s CAPEX initiatives.