KARACHI: Engro Polymer & Chemicals Limited (EPCL) has returned to profitability during the quarter ended March 31, 2026, marking a significant improvement compared with the loss recorded in the same period last year.
The company informed the Pakistan Stock Exchange that its Board of Directors reviewed and approved the unaudited standalone and consolidated financial results for the period ended March 31, 2026, at its meeting held on April 22, 2026.
According to the financial statements, standalone profit for the period reached Rs501.3 million, compared with a loss of Rs628.5 million in the corresponding period of 2025. Basic earnings per share (EPS) improved to Rs0.55, from a loss per share of Rs0.69 previously. Diluted EPS stood at Rs0.41.
The improvement was supported by a substantial rise in operating profitability. Standalone gross profit increased to approximately Rs2.59 billion, compared with Rs1.35 billion in the previous-year period. Operating profit also climbed to around Rs2.30 billion, up from Rs952.7 million.
However, finance costs remained a major expense, rising to approximately Rs1.77 billion during the period from Rs1.49 billion a year earlier. Despite the higher financing burden, the company managed to post a profit before final tax and income tax of approximately Rs528.9 million, compared with a loss of Rs539.2 million previously.
Consolidated performance also improves
EPCL’s consolidated results showed a similar turnaround. Revenue from contracts with customers increased to approximately Rs22.16 billion, compared with Rs17.87 billion in the corresponding period last year.
Consolidated gross profit nearly doubled to Rs2.54 billion, from Rs1.30 billion, while operating profit rose to approximately Rs2.19 billion, compared with Rs717.1 million previously.
After accounting for finance costs and taxes, consolidated profit for the period stood at Rs370.8 million, compared with a loss of Rs824.6 million in the same period last year. Basic consolidated EPS improved to Rs0.41, from a loss of Rs0.91, while diluted EPS stood at Rs0.31.
Cash position remains positive
The company’s cash-flow statements also showed an improvement in investing cash flows. Standalone net cash generated from investing activities amounted to approximately Rs2.86 billion, compared with cash utilisation of Rs454.4 million in the previous-year period. Cash and cash equivalents stood at around Rs5.45 billion at the end of the period.
On the consolidated side, net cash generated from investing activities reached approximately Rs2.99 billion, while cash and cash equivalents at period-end stood at about Rs5.61 billion.
Despite the improved earnings performance, EPCL’s balance sheet continues to reflect a sizeable borrowing base. Standalone long-term borrowings were reported at approximately Rs50.61 billion, while consolidated long-term borrowings stood at around Rs51.61 billion.
No dividend announced
The Board did not recommend a cash dividend for the period. It also recommended no bonus shares or right shares.
Overall, EPCL’s first-quarter results point to a strong recovery in profitability, with higher revenue and significantly improved gross and operating profits helping the company move from losses into positive earnings. At the same time, elevated finance costs and the company’s substantial debt position remain important factors for investors to watch in the coming quarters.
