Karachi: Engro Holdings Limited has reported a substantial increase in its financial performance for the third quarter of 2026, as disclosed in a recent corporate briefing. The company, which operates in the designated market category of diversified industrials, released its consolidated financial highlights for the year-to-date period ending in September 2026. The briefing, dated November 2, 2026, detailed significant improvements in revenue and profitability, driven by enhanced performance across various group companies.
The company's revenue reached PKR 426 billion, compared to PKR 371 billion in the previous year, indicating a significant move. Profitability consolidated rose to PKR 48.4 billion from PKR 38.2 billion last year, while profitability attributable to the owners' share increased to PKR 29.1 billion from PKR 21.4 billion, reflecting strategic enhancements in group operations. Earnings per share (EPS) also saw an upward trajectory, registering at PKR 24.33 against PKR 17.79 last year.
The owners' share of profitability was bolstered by the inclusion of financial results from Deodar for the entire current year, compared to only four months in the last year. Improved performances from subsidiaries such as Engro Polymer & Chemicals Limited (EPCL) and Engro Fertilizers Limited (EFERT) contributed positively, with EPCL benefiting from higher PVC margins and EFERT from increased urea sales. Both companies experienced remeasurement gains on SIDC. However, these gains were partially offset by lower profitability in terminal operations due to geopolitical tensions.
Engro Holdings' standalone financial results also reported impressive growth. Dividend income surged to PKR 9,772 million from PKR 537 million, leading to an increase in standalone profitability to PKR 9,347 million from PKR 370 million. The significant rise in dividend income was attributed to the share buyback initiative by Engro Corp, which positively impacted the company's earnings per share, moving from PKR 0.31 last year to PKR 7.82 this year.
According to information available from the Pakistan Stock Exchange (PSX), Engro Holdings' balance sheet as of September 2026 showed an increase in total assets to PKR 1,112,659 million from PKR 1,051,023 million in December 2025. This growth was primarily due to a rise in stock in trade, attributed to higher urea inventory. Total liabilities increased to PKR 782,281 million from PKR 750,626 million, largely due to increased borrowings by EFERT, ECORP, and Connect. Total equity also saw an upswing to PKR 330,379 million from PKR 300,397 million, driven by profitability increases.
In terms of portfolio performance, Engro Fertilizers Limited reported a revenue increase to PKR 150 billion from PKR 135 billion last year, with profitability climbing to PKR 16 billion from PKR 14 billion. Despite a slight decrease in urea volumes, the company's profitability was supported by improved urea margins and remeasurement gains on SIDC. The outlook for the fertilizer market remains optimistic, with healthy demand expected during the Rabi season, while volatility is anticipated due to geopolitical factors affecting input costs.
Engro's connectivity sector also showed robust growth, with revenue rising to PKR 62 billion from PKR 31 billion last year, and profitability increasing to PKR 5.8 billion from PKR 2.3 billion. The company continues to lead the ITC market in Pakistan, with plans to enhance colocation across its existing infrastructure, thereby supporting profitable growth without significant capital investments.
In the energy and polymers sectors, Engro Energy Limited reported stable revenue at PKR 94 billion compared to PKR 92 billion last year, with profitability increasing to PKR 24.6 billion from PKR 21.6 billion. Engro Polymers Limited also saw a turnaround in profitability, recording PKR 0.3 billion compared to a loss of PKR 3.5 billion last year, driven by increased PVC sales and cost relief measures.
Looking forward, Engro Holdings remains focused on optimizing costs and reducing energy dependency through alternative initiatives, while navigating risks associated with market volatility and geopolitical disruptions.