Karachi: Engro Holdings Limited has reported a strong financial performance for the first quarter ended March 31, 2026, with consolidated profit after tax (PAT) rising to PKR 15.93 billion, compared to PKR 4.04 billion in the same period last year. Profit attributable to shareholders increased to PKR 10.24 billion, translating into earnings per share (EPS) of PKR 8.50, up from PKR 1.52 in the corresponding quarter of 2025.
The company attributed the sharp improvement in earnings to the inclusion of Deodar’s financial results, higher fertilizer and polymer sales volumes, improved margins, and continued cost optimization initiatives across the group. Excluding one-off impairment charges recorded in the prior year, shareholder earnings still registered significant year-on-year growth, underscoring the strength of the group’s core operations.
During the quarter, Engro Holdings navigated a challenging operating environment marked by geopolitical tensions, rising global energy prices, and renewed inflationary pressures. Despite these headwinds, the company maintained resilient performance across its diversified portfolio, which spans fertilizers, polymers, energy, telecom infrastructure, food, terminals, and trading businesses.
The fertilizer business benefited from stronger urea demand supported by improved farmer economics and favorable water availability, while the polymer segment posted higher profitability on the back of improved PVC margins and stable operations. Meanwhile, the towers business continued to focus on increasing colocation across its existing network, positioning itself to benefit from Pakistan’s future 5G rollout and rising demand for digital infrastructure.
Engro’s energy portfolio continued to deliver stable cash flows through availability-based returns, with the company emphasizing the strategic importance of utilizing domestic energy resources such as Thar coal and indigenous gas. The foods business also recorded improved profitability, driven by stronger sales of value-added dairy products, operational efficiencies, and disciplined cost management.
Despite the robust quarterly performance, the Board of Directors did not announce an interim cash dividend. Instead, the company plans to seek shareholder approval for a share buyback proposal at its upcoming Annual General Meeting. According to management, this approach aligns with its disciplined capital allocation strategy, which prioritizes maintaining financial flexibility, investing in high-return opportunities, and enhancing long-term shareholder value.
Looking ahead, Engro Holdings expects Pakistan’s economic environment to remain influenced by geopolitical developments, elevated energy prices, and supply chain disruptions. Nevertheless, management remains focused on operational resilience, prudent capital allocation, and maximizing the value of its diversified business portfolio.
The company stated that its long-term strategy remains centered on generating sustainable cash flows per share while maintaining high standards of governance, integrity, and responsible capital stewardship.
