EPCL posts Rs1.6bn profit turnaround in 1HCY26

August 17, 2026 (MLN): Engro Polymer & Chemicals Limited (PSX: EPCL) staged a remarkable financial turnaround for the half-year ended June 30, 2026 (1HCY26), reporting a consolidated net profit of Rs1.63bn.

This represents a complete recovery from the net loss of Rs3.23bn recorded in the corresponding period last year.

Reflecting this sharp return to profitability, the company's basic earnings per share (EPS) turned positive at Rs1.79 (diluted: Rs1.35), compared to a basic loss per share of Rs3.55 in 1HCY25.

The primary catalyst for the turnaround was a significant recovery in gross margins, supported by modest top-line revenue growth.

Net revenue from contracts with customers increased by 4% year-on-year to Rs39.26bn, up from Rs37.61bn.

Meanwhile, the cost of sales declined by 5% to Rs34.68bn, enabling the company to expand its gross profit nearly four-fold to Rs4.58bn compared to Rs1.20bn in 1HCY25.

On the operational front, overheads were bolstered by a multi-fold surge in secondary income.

While distribution and marketing expenses rose 16% to Rs349.73m and administrative expenses dipped slightly by 1% to Rs909.03m, "other income" exploded to Rs2.17bn from Rs213.60m in 1HCY25.

Additionally, "other expenses" dropped 47% to Rs222.78m. Driven by these operational gains, EPCL posted an operating profit of Rs5.26bn, rebounding from an operating loss of Rs225.38m last year.

Below the operating line, finance costs expanded by 23% to Rs3.69bn. Despite this interest burden, strong operating margins pushed the profit before tax to Rs1.33bn (reversing a pre-tax loss of Rs3.18bn).

The company received further support from a net income tax credit of Rs300.88m (alongside Rs244.77m in final tax and Rs2.78m in minimum tax differential).

Backed by core gross margin expansion and secondary income, Engro Polymer & Chemicals Limited securely closed the six-month period firmly back in the black with a final net profit of Rs1.63bn.

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