Engro Holdings Limited reported a 41 percent year-on-year (YoY) decline in consolidated profit after tax to Rs. 18.6 billion during the first half of calendar year 2026 (1HCY26), compared with Rs. 31.6 billion recorded in the same period last year. The company’s earnings per share (EPS) also declined to Rs. 15.46 from Rs. 26.23.
Despite the decline in profit, Engro Holdings’ revenue increased 5 percent YoY to Rs. 259.3 billion in 1HCY26 from Rs. 247.3 billion. Gross profit also rose 31 percent to Rs. 72.7 billion.
According to Arif Habib Limited, higher costs and a significant decline in other income put pressure on the company’s overall earnings.
Engro Holdings reported consolidated profit after tax of Rs. 8.97 billion in the second quarter of CY26, down 70 percent YoY from Rs. 29.76 billion in 2QCY25. EPS fell to Rs. 7.45 during the quarter compared with Rs. 24.71 in the same period last year.
The decline was mainly attributed to higher-than-expected cost of sales and increased administrative expenses.
The company’s total borrowings increased 36 percent YoY to Rs. 392 billion, largely due to funding requirements for its telecom towers business. Finance costs also increased 5 percent to Rs. 12.7 billion.
Engro Fertilizers Limited (EFERT) reported a 32 percent YoY decline in second-quarter net profit to Rs. 3.8 billion, mainly due to weaker fertilizer offtakes. Net sales declined 34 percent YoY and 13 percent quarter over quarter during the period.
However, earnings received support from a one-off Rs. 1.8 billion gain related to the remeasurement of the provision for Sui Northern Gas Pipelines Limited.
Engro Holdings’ power portfolio continued to contribute to group earnings during the quarter.
Engro Polymer and Chemicals Limited (EPCL) contributed approximately Rs. 706 million, while FrieslandCampina Engro Pakistan Limited (FCEPL) contributed around Rs. 1.02 billion to second-quarter earnings. Meanwhile, the company’s telecom tower business contributed approximately Rs. 3 billion during the quarter.
Despite the decline in earnings, Arif Habib Limited maintained a buy stance on Engro Holdings and set a June 2027 target price of Rs. 360 per share.
