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In a year marked by tighter margins and rising costs, Engro Fertilizers Limited saw its profits slip but managed to keep its business stable through smart cost management.
The company’s profit after tax for the nine months ending September 30, 2025, fell to Rs14.3 billion, a 20.6% drop from Rs18 billion last year.
Despite weaker earnings, Engro Fertilizers announced a cash dividend of Rs4.5 per share for the period, showing continued returns to shareholders.
Earnings and Sales Performance
The company’s earnings per share (EPS) declined to Rs10.69 from Rs13.47 in the same period last year (9MFY24).
Net sales also dropped by 21.2% year-over-year, reaching Rs135.5 billion, mainly because of reduced revenue during the period.
However, there was a silver lining — the cost of sales fell even more sharply, by 27.8%, to Rs91.1 billion from Rs126.1 billion.
This helped the company improve its gross margin to 32.8%, up from 26.6% last year, showing tighter control over costs even as sales volumes dipped.
Operating and Financial Highlights
| Description | 9MFY25 (Rs 000) | 9MFY24 (Rs 000) | Change % |
| Net Sales | 135,453,906 | 171,844,834 | -21.2% |
| Cost of Sales | (91,086,321) | (126,104,174) | -27.8% |
| Gross Profit | 44,367,585 | 45,740,660 | -3.0% |
| Selling & Distribution Expenses | (11,936,487) | (11,144,648) | 7.1% |
| Administrative Expenses | (3,717,308) | (3,690,440) | 0.7% |
| Other Income | 1,578,027 | 2,414,218 | -34.6% |
| Other Operating Expenses | (2,642,185) | (2,662,792) | -0.8% |
| Finance Cost | (4,120,890) | (2,661,272) | 54.8% |
| Gain on Subsidy Receivable (GoP) | 194,689 | 699,703 | -72.2% |
| Profit Before Tax | 23,723,431 | 28,695,429 | -17.3% |
| Taxation | (9,449,139) | (10,715,206) | -11.8% |
| Profit After Tax | 14,274,292 | 17,980,223 | -20.6% |
| EPS (Rs) | 10.69 | 13.47 | -20.6% |
Cost Pressures and Government Subsidy
Engro’s finance costs surged by 54.8% to Rs4.1 billion, reflecting higher interest expenses.
The gain on subsidy receivable from the Government of Pakistan also plunged 72.2%, from Rs698 million last year to just Rs194.7 million this year.
Meanwhile, other income dropped 34.6%, while selling and distribution costs rose 7.1%, and administrative expenses edged up 0.7%. These increases slightly offset the company’s gains from cost savings elsewhere.
Final Profit and Margins
Engro Fertilizers’ profit before tax was Rs23.7 billion, down 17.3% from last year. After paying Rs9.4 billion in taxes, the company posted a net profit of Rs14.3 billion, compared to Rs18 billion a year earlier.
Even with falling profits, the company maintained a net profit margin of 10.5%, showing resilience in a challenging economic environment.
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