ENGROH earnings to hit Rs8.7bn in 2QCY25

August 27, 2025 (MLN): Engro Holdings Ltd. (PSX: ENGROH) is to post  consolidated recurring earnings of Rs8.7 billion (EPS: Rs7.25) in 2QCY25, up 3.9x year-on-year compared to Rs2.2bn (EPS: Rs1.86) in the same period last year.

AKD Securities maintains its BUY call on ENGROH with a December 2025 target price of Rs301/share.

The brokerage highlights that profitability growth across existing segments, coupled with expansion into the telecom sector amid a declining interest rate environment and anticipated energy sector reforms, is expected to strengthen future prospects.

The sharp surge in earnings is mainly attributed to the continuation of the company’s energy portfolio and improved performance in fertilizer and telecom businesses.

However, no payout is anticipated alongside the result due to increased cash requirements for the acquisition of Deodar, according to the brokerage.

On a segmental basis, Engro Energy Ltd. is projected to contribute Rs5.4bn (Rs4.5/share) to quarterly earnings, with its reclassification into continuous operations following the termination of the share purchase agreement in April 2025.

Meanwhile, Engro Fertilizers (PSX: EFERT) posted a 3.3x YoY jump in quarterly earnings to Rs5.6bn, supported by 40%/31% growth in urea and DAP sales, driving gross margins up 11ppts YoY to 31.4%.

Engro Connect is expected to record earnings of Rs899mn in 2QCY25, aided by the addition of Deodar’s 10,600 towers, though finance costs are seen rising 79% YoY to Rs3.4bn.

On the other hand, losses at Engro Polymer & Chemicals Ltd. (PSX: EPCL) widened to Rs2.4bn, driven by higher gas tariffs and weak PVC margins, with gross margins slipping to 0.2%.

Furthermore, AKD expects Elengy’s earnings are expected to remain stable at Rs1.1bn, while Friesland Campina Engro Pakistan Ltd. (PSX: FCEPL) is projected to contribute Rs93m compared to Rs235m last year due to higher taxation.

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