Engro Fertilizers Limited, traded on the PSX as EFERT, registered a net profit of Rs. 9.1 billion during the third quarter of calendar year 2026, marking a 57% jump from the previous year and a 140 percent surge compared to the prior quarter, driven by higher urea sales and a stronger market share, Arif Habib Limited reported.
Earnings per share reached Rs. 6.83 for the July-September period, up from Rs. 4.35 during the corresponding timeframe last year, while net sales climbed 45% year over year to hit Rs. 79.6 billion, and gross profit grew 56% to reach Rs. 27.9 billion.
Management declared a cash payout of Rs. 5.50 per share, representing an 80% payout ratio, compared to the Rs. 4.50 per share distributed during the same period of the prior year, with the report noting that the lower ratio could point to cautious capital allocation given potential liabilities.
Urea sales surge as market share improves
Urea offtake for Engro Fertilizers climbed 175% quarter over quarter to reach 711,000 tons in September 2026, aided by better inventory levels and favorable farm economics, even as broader industry sales suffered due to transporter strikes.
Sales volumes and market presence also benefited from production halts at rival manufacturers, such as Fatima Fertilizer, Fauji Fertilizer Company, and Agritech Limited.
Diammonium phosphate sales jumped 168.4% year over year to 37,000 tons, while the enterprise maintained a gross margin of 35% across the third quarter.
Operating and financing expenses grew alongside sales, as distribution expenditures increased 33% year over year to Rs. 7.1 billion due to higher volume and expensive fuel, while finance costs jumped 90% to Rs. 2
