Engro Holdings Reports PKR 48.4 Billion Profit for Nine Months Ended September 2026
Engro Holdings Limited has reported a consolidated profit after tax (PAT) of PKR 48.42 billion for the nine months ended September 30, 2026, compared with PKR 83.03 billion in the corresponding period last year. The company’s earnings per share (EPS) stood at PKR 24.33, against PKR 32.31 in the same period of 2025.
According to the company’s financial results, the reported decline in profit was primarily influenced by significant one-off impacts included in the previous year’s comparative results. Excluding these adjustments, the owners’ share of profit increased to PKR 29.09 billion from PKR 21.43 billion, reflecting improved underlying earnings across the group’s businesses.
The improvement in core profitability was supported by the full nine-month consolidation of Deodar (Private) Limited, compared with four months in the corresponding period last year, alongside better performances from several group companies.
Power and Mining Lead Group Earnings
The power and mining segment remained the largest contributor to Engro Holdings’ profitability, generating a consolidated profit of PKR 24.61 billion during the nine-month period, compared with PKR 21.64 billion last year.
The fertilizer segment also delivered improved results, with profit rising to PKR 16.24 billion from PKR 14.27 billion. Meanwhile, the connectivity and telecom segment increased its contribution to PKR 5.76 billion from PKR 2.28 billion.
The polymer business returned to profitability, reporting a profit of PKR 314 million compared with a loss of PKR 3.45 billion in the corresponding period last year. Stronger PVC margins and higher hydrogen peroxide sales supported the recovery.
The terminal segment reported a profit of PKR 1.62 billion, compared with PKR 2.31 billion last year, mainly due to lower LNG imports and reduced throughput. The trading business also improved its profitability, with earnings reaching PKR 1.43 billion against PKR 1.22 billion.
EPCL Divestment and Portfolio Restructuring
A major development during the reporting period was the agreement signed by Engro Corporation to sell its 56.19% shareholding in Engro Polymer and Chemicals Limited (EPCL) to Lotte Chemical Pakistan Limited for PKR 19.7 billion.
The proposed transaction reflects the group’s strategy of reallocating capital towards businesses offering stronger long-term returns and more sustainable cash flows. The company believes EPCL could benefit from greater scale and operational efficiencies under its proposed new ownership.
The transaction remains subject to the fulfilment of applicable conditions.
Expansion in Energy and Telecom Infrastructure
Engro’s energy portfolio continued to provide stable earnings, supported by reliable operations and predictable cash flows.
In October 2026, Sindh Engro Coal Mining Company inaugurated Phase III of the Thar Block II expansion, increasing annual mining capacity from 7.6 million tonnes to 11.2 million tonnes. The expansion is expected to reduce the cost of indigenous coal and strengthen Pakistan’s domestic energy supply.
The company is also evaluating a potential Phase IV expansion that could increase annual capacity to 15.2 million tonnes, subject to commercial viability.
In the telecom infrastructure business, the group continued to expand and modernize its network. Its portfolio includes more than 15,000 tower sites, with a tenancy ratio exceeding 1.35 times. The business is focusing on colocation, fiber deployment, new tower construction and energy efficiency.
Share Buyback Reaches 80% of Approved Programme
Engro Holdings continued its capital allocation strategy through share repurchases rather than declaring an interim cash dividend for the nine-month period.
As of October 25, 2026, the company had repurchased 36.2 million shares at an average price of PKR 274.13 per share, representing approximately 80% of the buyback programme approved by shareholders.
The programme aims to enhance long-term shareholder value by reducing the number of outstanding shares and increasing the remaining shareholders’ participation in future earnings and cash flows.
Standalone Profit Shows Significant Growth
On a standalone basis, Engro Holdings reported a profit after tax of PKR 9.35 billion, compared with PKR 370 million in the corresponding period last year. Standalone EPS increased to PKR 7.82 from PKR 0.31.
The improvement was mainly attributed to dividends received from Engro Corporation to support the share buyback programme.
Outlook
Looking ahead, Engro Holdings remains focused on disciplined capital allocation, portfolio optimization and sustainable cash flow generation. The company expects its businesses across fertilizers, energy, telecom infrastructure, terminals, food and trading to provide opportunities for long-term growth.
However, geopolitical tensions, volatile oil prices, inflationary pressures and higher financing costs remain important challenges for the operating environment.
The company reiterated that its primary objective is to improve sustainable cash flow per share while maintaining financial flexibility and investing in opportunities that meet its return expectations.
Overall, despite lower reported consolidated profits compared with last year’s results, the improvement in underlying earnings, progress on the share buyback programme and strategic portfolio developments highlight Engro Holdings’ continued focus on strengthening its long-term financial position and shareholder value.
