Engro Fertilizers Limited Corporate Briefing Q3 2026 Presentation

Key takeaways

• Q3 2026 revenue increased 45% year-on-year to PKR 79.6 billion, while YTD revenue rose 11% to PKR 150.4 billion.
• Q3 2026 profitability grew 57% year-on-year to PKR 9.1 billion, bringing YTD profitability to PKR 16.2 billion, up 14% SPLY.
• Earnings per share (EPS) for Q3 2026 reached PKR 6.83 compared to PKR 4.35 in SPLY, with YTD EPS standing at PKR 12.16 versus PKR 10.69 SPLY.
• The company declared a dividend of PKR 5.50 per share for Q3 2026, bringing YTD dividends to PKR 9.25 per share compared to PKR 11.00 per share SPLY.
• EFERT gained 38% market share in urea during Q3 2026 despite premium pricing, driven by strategic planning, product placement, and timely supply-chain execution.
• YTD urea industry sales increased 5% driven by pre-season buying, while Q3 industry sales grew 2% year-on-year.
• DAP international prices increased 35% year-to-date, though Q3 industry offtake fell 12% year-on-year as record-high prices weighed on farmer affordability.
• Gross margin improved to 34% for 9M and reached 35% in Q3, supported by full discount roll-backs and price pass-on of incremental geopolitical business costs.
• Net profit margin increased by 26 basis points from 10.5% LY to 10.8% for 9M 2026, supported by a one-off SIDC remeasurement gain.
• Debt-to-capital ratio increased to 52% compared to 50% in December 2025, with total debt rising to PKR 79 billion primarily due to working capital and business requirements.
• Engro Markaz onboarded 5,752 farmers year-to-date across 10 total stores, including 4,848 farmers and 1 store added in Q3.
• The company contributed PKR 20 billion to the National Exchequer via government taxes, duties, and levies.
• EFERT urea provided significant import substitution, selling at an average MRP of PKR 4,715 per bag in 9M 2026 compared to an international landed cost of PKR 10,640 per bag, representing a 56% discount.
• Phase 1 Scope 1 of the Pressure Enhancement Facility is completed, and Scope 2 is in progress, part of approximately USD 300 million industry capex to enhance gas pressure from the Mari field.
• Phase 2 of the Pressure Enhancement Facility has construction and installation activities in progress, with expected completion targeted by Q1 2027.