Karachi: Engro Fertilizers Limited, a key player in the chemicals sector, has reported substantial growth in its financial performance for the third quarter of 2026, as highlighted in their corporate briefing session held on October 23, 2026. The company revealed a 45% increase in revenue, amounting to PKR 79.6 billion, and a 57% rise in profitability, reaching PKR 9.1 billion compared to the same period last year. Earnings per share (EPS) for the quarter also rose to PKR 6.83 from PKR 4.35 in the previous year.

For the year-to-date period, Engro Fertilizers reported a revenue of PKR 150.4 billion, marking an 11% increase, and a profitability of PKR 16.2 billion, reflecting a 14% growth compared to the same period last year. The EPS for the year-to-date improved to PKR 12.16 from PKR 10.69 in the prior year.

The company also announced a dividend of PKR 5.50 per share for the third quarter of 2026, up from PKR 4.50 per share in the third quarter of 2025. However, the year-to-date dividend was lower at PKR 9.25 per share compared to PKR 11.00 per share in the previous year.

Engro Fertilizers attributed the 11% increase in revenue to higher sales volumes and pricing actions in the urea segment, alongside increased volumes and average selling prices in the phosphates segment. The gross profit saw a 16% rise due to the rollback of discounts, price pass-on of incremental business costs driven by geopolitical conflicts, and higher sales volumes. Consequently, the gross margin improved to 34% and further to 35% in the third quarter.

According to information available from the Pakistan Stock Exchange (PSX), the net profit of the company increased by 14%, supported by a one-off SIDC remeasurement gain, despite being partially offset by higher selling expenses and finance costs. The net profit margin also experienced a slight improvement, increasing by 26 basis points from 10.5% in the previous year to 10.8% in the first nine months of 2026.

The company's debt to capital ratio rose to 52% from 50% in December 2025, with the debt level increasing to PKR 79 billion from PKR 43 billion at the end of 2025. The increase in debt was primarily driven by working capital and business requirements.