Topline Pakistan Research summarised key points from Engro Fertilisers (EFERT) 1Q2026 Corporate Briefing:

– The gas allocation of 105mmcfd to the Base plant is now permanent, enhancing production stability. – Urea MRP has increased to Rs 4,749/bag, with potential cost passes to consumers if inflation continues.

– EFERT’s revenue grew 25% YoY to Rs37.8bn, although gross margins dropped to 31%. Profitability rose 14% YoY to Rs3.3bn (EPS: Rs2.48).

– Urea inventory was 191k tons, and DAP inventory was stable at 42k tons despite geopolitical tensions. – The company declared a first interim dividend of Rs 2.0/share and targets urea sales of ~6-6.5 million tons for the year.

– Finance costs increased 31% YoY, and the Pressure Enhancement Facility project is underway, with plans for retail expansion through 10 new stores by 2Q2026.

– EFERT trades at a 2026E P/E of 10.1x and a dividend yield of 10%.