Engro Fertilizers Limited (PSX: EFERT) reported a 57% year-over-year and 140 percent quarter-on-quater increase in net profit to Rs. 9.1 billion in the third quarter of calendar year 2026, supported by stronger urea sales and improved market share, according to Arif Habib Limited.
The fertilizer maker posted earnings per share of Rs. 6.83 for the July-September quarter, compared with Rs. 4.35 in the same period last year. Net sales rose 45% year over year to Rs. 79.6 billion, while gross profit increased 56% to Rs. 27.9 billion.
The company announced a cash dividend of Rs. 5.50 per share, equivalent to an 80% payout ratio. This compared with a dividend of Rs. 4.50 per share in the corresponding period last year. The lower payout ratio may reflect a more cautious approach to capital allocation amid potential liabilities, the report said.s
Urea sales surge as market share improves
Engro Fertilizers’ urea offtake increased 175% quarter over quarter to 711,000 tons in September 2026, supported by improved inventory availability and farm economics. Industry sales, by contrast, faced disruptions caused by transporter strikes.
Plant shutdowns at competing producers, including Fatima Fertilizer, Fauji Fertilizer Company and Agritech Limited, also supported Engro Fertilizers’ sales volumes and market share.
Diammonium phosphate (DAP) offtake increased 168.4% year over year to 37,000 tons. The company reported a gross margin of 35% for the third quarter.
Despite stronger sales, Engro Fertilizers faced mounting operating and financing expenses. Distribution costs increased 33% year over year to Rs. 7.1 billion during the quarter, driven by higher offtake and rising fuel prices. Finance costs rose 90% to Rs. 2
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