Engro Fertilizers posts Rs22.6bn PAT in FY25

February 12, 2026 (MLN): Engro Fertilizers Limited (PSX: EFERT) reported a profit after tax of Rs22.63 billion for the year ended December 31, 2025, down 19.93% YoY from Rs28.26bn in FY24.

Earnings per share (EPS) settled at Rs16.95, declining from Rs21.16 in the previous year, showing the combined impact of rising finance costs and lower operational profitability.

Net sales for FY25 fell 7.61% YoY to Rs237.13bn from Rs256.68bn in FY24, driven by subdued domestic demand and pricing pressures in the fertilizer sector.

Despite the decline in revenue, cost of sales dropped 10.92% YoY to Rs164.58bn, slightly easing margin pressure.

Gross profit remained largely stable at Rs72.55bn, marking a modest 0.87% YoY increase, with gross margins reflecting cost optimization initiatives.

The company’s operating expenses saw mixed trends. Selling and distribution expenses increased 12.54% YoY to Rs20.21bn, while administrative expenses rose 10.01% YoY to Rs4.72bn, showing higher logistics and operational support costs.

As a result, profit from operations declined 4.13% YoY to Rs47.62bn.

Other income fell 12.82% YoY to Rs2.55bn, mainly due to lower returns on non-core activities.

Meanwhile, finance costs surged 49.46% to Rs6.17bn, showing higher borrowing costs and leverage during the year.

Gains on subsidy receivable from the Government of Pakistan declined 48.07% YoY to Rs624.72m, partially offsetting financial pressures.

Profit before taxation contracted 11.35% YoY to Rs40.03bn, while taxation rose 3% YoY to Rs17.40bn, pushing the effective tax rate slightly higher.

After accounting for taxes, profit after tax settled at Rs22.63bn, down 19.93% YoY.

The company declared a final cash dividend of Rs4 per share (40%), in addition to interim dividends of Rs11 per share (110%) already paid, bringing total FY25 dividends to Rs15 per share.

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