Karachi: Engro Holdings Limited has reported a decline in its consolidated profit after tax for the nine months ending September 30, 2026, amid a challenging economic landscape marked by rising oil prices and inflationary pressures. The company disclosed a profit after tax of PKR 48,422 million, with the owners' share at PKR 29,092 million, compared to PKR 83,034 million and PKR 38,900 million, respectively, in the corresponding period last year. The earnings per share dropped to PKR 24.33 from PKR 32.31.
The global economy faced significant tests during the third quarter of 2026. Oil prices surged past US$100 per barrel in September due to renewed hostilities in the Middle East, which contributed to a rise in consumer price index inflation in Pakistan, reaching 10.3% in September 2026, up from 5.8% a year earlier. The State Bank of Pakistan maintained the policy rate at 11.5% during July and September before increasing it by 50 basis points to 12% in October to combat inflation and manage oil price risks.
According to information available from the Pakistan Stock Exchange (PSX), equity markets exhibited caution as the KSE-100 index fell by a significant move of 5.7% over the quarter, closing at 169,969 points. Despite these challenges, the external position remained supportive, with workers' remittances increasing by 14% to US$10.9 billion during the three months from July to September of the fiscal year 2027, aiding in narrowing the current account deficit and stabilizing the rupee. In October, the International Monetary Fund reached a staff-level agreement with the Pakistani government on upcoming program reviews, potentially unlocking US$1.2 billion upon Executive Board approval.
Engro Holdings Limited focused on developments within its portfolio amidst this economic backdrop. Notably, Engro Corporation signed an agreement to divest its shareholding in EPCL, SECMC completed the Phase III expansion of Thar Block II, and the share buyback program achieved approximately 80% of its approved mandate. These moves are part of the company's strategy to ensure shareholder capital is effectively utilized to generate sustainable returns.
The company's financial performance, excluding one-off impacts, saw owners' share profit after tax increase from PKR 21,427 million to PKR 29,092 million, driven by the full nine-month inclusion of Deodar, compared to four months in the previous year, and improved performance across other group companies. The financial results reflect Engro's ongoing commitment to improving the quality and resilience of its cash flows while adhering to its foundational values of truthfulness, trustworthiness, humility, integrity, and perseverance in hardship.
Despite the reported decline in profits, Engro Holdings remains steadfast in its central goal of disciplined stewardship of shareholder capital, aiming for long-term growth through sound investments and maintaining the flexibility to explore opportunities with attractive risk-adjusted returns.