EPCL returns to profit with Rs399m earnings in 9MCY26

October 21, 2026 (MLN): Engro Polymer & Chemicals Limited (PSX: EPCL) swung to a profit of Rs399.06m for the nine months ended September 30, 2026 (9MCY26), compared with a net loss of Rs2.83bn in the same period last year.

Basic earnings per share (EPS) stood at Rs0.44, against a loss per share (LPS) of Rs3.12 in 9MCY25.

The turnaround came from a nearly five-fold jump in other income, a stronger gross margin, lower other expenses and an income tax credit. Higher finance costs and a final tax charge partly offset the gains.

Net revenue from contracts with customers grew 12.03% to Rs63.94bn from Rs57.08bn. Cost of sales rose at a slower pace of 10.70% to Rs58.88bn from Rs53.19bn, lifting gross profit 30.19% to Rs5.07bn from Rs3.89bn.

Distribution and marketing expenses increased 6.42% to Rs518.41m from Rs487.14m, while administrative expenses edged down 1.48% to Rs1.39bn from Rs1.41bn. Other expenses fell 65.05% to Rs263.16m from Rs752.86m.

Other income rose nearly five-fold to Rs2.72bn from Rs568.95m, which pushed operating profit more than three-fold to Rs5.61bn from Rs1.81bn.

Finance costs, however, rose 27.58% to Rs5.64bn from Rs4.42bn, absorbing most of the operating gains.

As a result, the loss before minimum tax differential, final tax and income tax narrowed 99.01% to Rs25.73m from Rs2.61bn.

A final tax charge of Rs396.95m, against a credit of Rs45.71m in 9MCY25, took the loss before income tax to Rs422.68m, down 83.55% from Rs2.57bn.

An income tax credit of Rs821.73m, against a charge of Rs264.30m last year, lifted the company back into the black with a profit of Rs399.06m.

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