Engro Holdings sees stellar Q1 with 4x profit growth

April 27, 2026 (MLN): Engro Holdings Limited (PSX: ENGROH) reported a near-quadrupling of its net profit for the quarter ended March 31, 2026, recording Rs15.93bn compared to Rs4.04bn in the corresponding period last year.

Reflecting this exceptional bottom-line performance, the company's earnings per share (EPS) expanded to Rs8.5 from Rs1.52 in Q1CY25.

The primary driver of this profit expansion was a strong top-line growth, though direct costs rose in parallel. ENGROH's revenue posted a 30% year-on-year increase, rising to Rs131.97bn from Rs101.25bn.

Concurrently, the cost of revenue grew at a faster pace of 37%, reaching Rs95.25bn. Despite this cost pressure, gross profit still managed a healthy 16% expansion, settling at Rs36.72bn up from Rs31.65bn in the prior year.

On the operational front, the company delivered a mixed performance across its overheads. Selling and distribution expenses declined by 10% to Rs3.02bn, while administrative expenses rose by 12% to Rs3.88bn.

Other income grew 23% to Rs3.06bn, and other operating expenses contracted by 11% to Rs892.83m.

Aided further by the absence of a remeasurement loss on thermal assets that had burdened the prior year, the operating profit surged by a substantial 75% to Rs31.85bn.

Below the operating line, ENGROH faced elevated debt-servicing costs, with finance costs climbing 39% to Rs11.16bn.

This was meaningfully offset, however, by a sharp 186% surge in share of income from JV/associates, which rose to Rs1.96bn from Rs684.18m, pushing profit before income, minimum, and final tax up by 110% to Rs22.65bn.

After accounting for minimum and final tax of Rs2.97bn, profit before income tax reached Rs19.68bn, up 102% year-on-year. Income tax expense declined sharply by 31% to Rs3.75bn.

With no losses from discontinued operations recorded in the current period against Rs273.87m booked in the prior year Engro Holdings successfully delivered its impressive 294% leap in final net profit, closing the quarter at Rs15.93bn.

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