AKD Research’s report on the Pakistan Fertilizer Industry highlights a decline in fertilizer offtakes in July 2025, primarily due to weak farm economics and high phosphate prices. Urea sales were flat year-on-year at 608k tons, while DAP and NP sales plummeted by 35% and 51%, respectively. Conversely, CAN sales increased by 30%. FFC saw a 10% YoY rise in urea sales, boosting its market share, while EFERT’s urea sales fell by 16% due to a high base effect.

Additionally, FATIMA’s urea sales grew by 4%, aided by discounts.

The report anticipates subdued urea prices and a potential decline of 7-9% in urea offtakes for the year, unless exports are allowed to alleviate inventory pressure. The sector maintains an overweight stance due to strong earnings and attractive dividend yields, with FFC and ENGROH as preferred picks. Target prices are set at PkR597/sh for FFC and PkR301/sh for ENGROH.

https://research.akdsl.com/638911297232679820.pdf