Engro Holdings profit plunges 56% to Rs30m in 1HCY26

August 21, 2026 (MLN): Engro Holdings Limited (PSX: ENGROH) recorded a 56% decline in its consolidated net profit for the half year ended June 30, 2026, with profit for the period falling to Rs30.44m from Rs69.33m in the corresponding period last year.

Showing this softer bottom-line, the company's earnings per share (EPS) from continuing operations contracted to Rs15.48 from Rs26.46 in FY25, while total EPS declined to Rs15.48 from Rs26.23.

The top-line showed modest growth, with revenue rising 5% year-on-year to Rs259.26m from Rs247.26m in the prior year.

Cost of revenue, however, declined 3% to Rs186.59m, allowing gross profit to expand by a healthy 31% to Rs72.68m from Rs55.55m showing improved margin management at the gross level.

On the expenditure side, selling and distribution expenses rose 14% to Rs6.70m, while administrative expenses were sharply reduced by 36% to Rs8.46m, showing meaningful cost discipline. Other operating expenses also fell significantly by 46% to Rs1.69m.

Other income eased marginally by 3% to Rs5.62m from Rs5.78m.

Among other gains, the gain on subsidy receivable from the Government of Pakistan declined 86% to Rs26,521. A remeasurement gain on provision for SIDC of Rs3.15m emerged in the current year with no comparable figure in the prior period.

However, the most significant contrast with last year was the complete absence of two exceptional items that had inflated FY25 operating profit an adjustment in respect of carrying value of thermal assets of Rs35.76m and a remeasurement gain on carrying value of thermal assets of Rs24.10m, both of which had no equivalent in the current year.

As a result, operating profit fell sharply by 35% to Rs64.63m from Rs99.19m.

Below the operating line, finance costs rose 32% to Rs23.79m from Rs18.03m, adding meaningful pressure. Share of income from joint venture and associates declined 14% to Rs4.11m from Rs4.79m.

These combined movements pulled profit before income tax, minimum tax, and final tax down 48% to Rs44.95m from Rs85.96m.

The levy minimum tax and final tax surged by 148% to Rs6.13m from Rs2.47m, more than doubling the levy burden and pulling profit before income tax down 54% to Rs38.82m from Rs83.48m.

Income tax declined 40% to Rs8.38m from Rs13.88m, providing partial relief. Profit from continuing operations nonetheless fell 56% to Rs30.44m. No loss from discontinued operations was recorded in the current year, against a loss of Rs273,874 in FY25, making profit for the period Rs30.44m a decline of 56%.

Of the total profit, Rs18.62m was attributable to owners of the Holding Company, down 41% from Rs31.58m, while non-controlling interest accounted for Rs11.82m, down 69% from Rs37.74m.

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