3 PSX Growth Stocks For 2027

Posted by: Aamir Hayat Like: 0 Post Date: May 22, 2026

3 PSX Growth Stocks For 2027

Introduction

Pakistan’s equity market is home to several companies that are positioned for strong earnings growth as we head into 2027. Whether you are a seasoned investor or someone just beginning to explore the Pakistan Stock Exchange (PSX), identifying stocks with solid earnings momentum can be a valuable starting point for your research. In this article, we take a closer look at three companies that stand out based on their projected earnings growth for 2027: Interloop Limited (ILP), Mughal Iron and Steel Industries (MUGHAL), and Barkat Frisian Agro Limited (BFAGRO). Each of these companies is backed by capacity expansion plans, operational improvements, and sector tailwinds that are expected to drive significant earnings growth over the coming year.

All data and projections referenced below are based on the latest available financial estimates and corporate briefing disclosures.

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3. Interloop Limited (ILP)

Expected Average 2027 EPS Growth Rate: ~60%

Overview and EPS Growth Outlook

Interloop Limited is one of Pakistan’s leading textile exporters, with operations spanning Hosiery, Apparel, and Denim. Based on the latest available projections, ILP is expected to deliver an average EPS growth rate of approximately 60% in 2027, making it one of the most compelling earnings recovery stories on the PSX.

Latest Financial Projections (FY26 – FY27)

The following earnings estimates reflect the latest available projections for Interloop:

FY2027 Earnings Per Share (EPS): Estimated to range from PKR 11.29 to PKR 13.12
FY2026 Earnings Per Share (EPS): Estimated to range from PKR 6.81 to PKR 8.85
Dividends per Share for FY2027: Projected to grow to between PKR 4.00 and PKR 5.00

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These estimates reflect a substantial upward trajectory in earnings, supported by the company’s ongoing capacity expansion programme.

Key Growth Drivers

The following factors are expected to drive Interloop’s performance through FY2027:

Operating Profit Turnaround: The company is positioned for a significant turnaround in operating profit and earnings through FY2026 and FY2027.
Improved Capacity Utilization: Growth is underpinned by improved utilization rates at recently expanded Apparel, Hosiery, and Denim plants.
Revenue Growth: Net sales are projected to grow by approximately 15% in FY2026, followed by an additional 24% jump in FY2027 as new capacities scale up.
High-Margin Focus: The company is concentrating on high-margin segments and strategic growth initiatives to sustain its leadership in the global export market.

Sector Context – Cotton Supply and Import Strategy

The textile sector faces a raw material challenge heading into 2026. National cotton production is expected to remain flat at approximately 7 million bales, representing a 30% shortfall against the government’s targets for FY2026. To address this gap, the textile industry is expected to import approximately 4 million bales of raw cotton during 2026. Interloop’s focus on operational efficiency and high-margin export segments positions it well to navigate these sector-wide headwinds.

2. Mughal Iron and Steel Industries (MUGHAL)

Expected Average 2027 EPS Growth Rate: ~84.3%

Overview and EPS Growth Outlook

Mughal Iron and Steel Industries is a diversified industrial company with operations in the ferrous (steel) and non-ferrous (copper recycling) segments. Based on the latest consolidated financial projections, MUGHAL is expected to deliver an EPS growth rate of 84.3% in 2027.

FY2027 Projected EPS: PKR 16.4
FY2026 Projected EPS: PKR 8.9

This near-doubling of earnings is expected to be driven by a combination of energy cost savings, an expanding copper segment, and a recovery in steel demand.

Key Growth Drivers

Captive Coal Power Plant Integration

A major catalyst for MUGHAL’s 2027 earnings is the full-scale operation of its 36.5 MW coal-fired captive power plant. While the plant is expected to achieve its Commercial Operations Date (COD) in Q2 FY26, its contribution to the company’s total energy needs is projected to rise from 33% in 2026 to 60% by 2027. This shift is estimated to deliver electricity at an effective tariff of PKR 27–28 per kWh, meaningfully lower than the grid cost of PKR 35–40 per kWh, generating a significant cost advantage.

Expansion of Non-Ferrous Segment

MUGHAL’s copper recycling operations are projected to be a primary driver of margin support through 2027. This segment is highly scalable and is expected to steadily increase output as regulatory and scrap procurement challenges are resolved. The copper recycling plant not only generates high-margin export revenue but also provides low-cost steel scrap to the ferrous division, improving overall profitability.

Recovery in Steel Offtakes

Following a period of subdued local demand, steel offtakes are forecasted to grow by 10% in 2027, as construction activity recovers in response to easing monetary policy and improving fiscal conditions.

Latest Corporate Briefing Data

Energy Mix Transformation: Management expects a dramatic shift from full reliance on the national grid to a dual-source model, with the captive coal plant becoming the primary driver of margin expansion by 2027.
Non-Ferrous Profitability: Despite representing a smaller share of revenue, the non-ferrous segment is expected to continue delivering 45% to 60% of the group’s total gross profit through 2027.
Market Leadership and Pricing Power: MUGHAL maintains a price premium through its high-frequency brands such as Super Girder, which commands a higher price per ton compared to standard products in both rural and urban markets.
Deleveraging and Finance Costs: While finance costs remained elevated through early 2026, the company is positioned to see relief as cash flows improve from the power and copper segments. Interest coverage is projected to improve to 4.6x by 2027.

1. Barkat Frisian Agro Limited (BFAGRO)

Expected Average 2027 EPS Growth Rate: ~47% to 50%

Overview and EPS Growth Outlook

Barkat Frisian Agro Limited is an agro-processing company that is undergoing significant capacity and product expansion. Based on the latest available projections, BFAGRO is expected to achieve an average EPS growth rate of approximately 47% to 50% for 2027. This growth trajectory is supported by major capacity investments and a strategic shift toward high-margin, value-added products.

Latest Corporate Briefing Data

Faisalabad Capacity Expansion

The company is investing PKR 870 million in a new Line II facility at the Faisalabad Special Economic Zone (SEZ). This expansion is scheduled for completion in Q3 FY2026 and will increase the company’s total annual processing capacity by 71%, rising from 17,000 MT to 29,000 MT.

Egg Powder Facility

A new 1,200 TPA egg powder processing facility is being established at the Karachi plant. It is expected to be operational by the end of the calendar year 2026. This facility targets the Middle Eastern markets and is projected to generate an additional US$8–9 million in annual revenue.

Backward Integration

To stabilize raw material costs and enhance margins, the company is developing a poultry layer farming project that is expected to come online by late 2026.

Export Scaling

Export contributions to total revenue are projected to reach 18% by FY2026, up from 10% in previous cycles, with a focus on premium GCC retail networks.

Latest Quarterly Results (3QFY26)

The most recent quarterly results reflect a company delivering on its growth targets:

Sales Revenue: PKR 7,884 million, representing a slight year-over-year increase
Net Income: PKR 1,407 million for the quarter
Quarterly EPS: PKR 7.24
Nine-Month Cumulative EPS (9MFY26): PKR 28.40, based on cumulative earnings of PKR 5,517 million

These results demonstrate that BFAGRO is already generating strong profitability ahead of its major capacity additions, which are expected to further accelerate earnings in 2027.

Conclusion

All three companies – Interloop Limited, Mughal Iron and Steel Industries, and Barkat Frisian Agro Limited – share a common thread: their earnings growth for 2027 is not speculative. It is anchored in real, on-ground developments, including new plant capacities, energy cost advantages, export market expansion, and operational efficiencies that are either already underway or scheduled for completion within the current fiscal year. For investors looking at the PSX with a medium-term horizon, these three stocks offer earnings growth stories that are grounded in identifiable catalysts rather than broad market hopes. As always, investors are encouraged to review the latest company disclosures and conduct their own due diligence before making any investment decisions. Disclaimer: This article is for informational purposes only and does not constitute investment advice.
All projections referenced are based on the latest available financial estimates and corporate briefing data at the time of writing.

⚠️ This post reflects the author’s personal opinion and is for informational purposes only. It does not constitute financial advice. Investing involves risk and should be done independently. Read full disclaimer →

3 PSX Growth Stocks For 2027