The KSE-100 index’s profitability increased by 8.8% YoY in 9MFY26, reaching PKR 1,243bn, driven by gains in several sectors: Banks (3%), Cements (7%), Investment Banks (167%), Leather (165%), Textile Composite (146%), OGMCs (58%), Auto Assemblers (25%), and others, while Chemicals (-17%), E&Ps (-9%), and Fertilizer (-3%) sectors saw declines.

Key highlights include:

– **Commercial Banks:** Profitability grew by 3% YoY to PKR 483bn, aided by lower interest expenses, which fell by 19%.

– **Cement:** Earnings rose by 7% YoY to PKR 65bn (excluding LUCK), boosted by lower coal prices and higher dispatches.

– **E&Ps:** Profitability (excluding POL) declined 9% YoY to PKR 226bn due to lower oil prices and production issues.

– **Power:** Net profit improved by 5% YoY to PKR 36bn, driven by increased associate profit, particularly for HUBC.

– **Fertilizer:** Earnings fell 3% YoY to PKR 109bn, impacted by sales tax issues and lower contributions from key companies, despite strong dividend income.

– **OGMCs:** Sector earnings surged 58% YoY to PKR 63.1bn, fueled by inventory gains and high prices.

– **Auto Assemblers:** Profit increased 25% YoY to PKR 48bn, supported by stronger sales and financing revival.

– **Technology:** The sector turned a profit of PKR 1.4bn (excluding SYS), recovering from a loss last year, led by PTC’s performance.

– **Textile Composite:** Earnings soared 146% YoY to PKR 12bn, bolstered by lower raw material costs.

– **Refinery:** Profit surged by 355% YoY to PKR 34bn due to higher volumes and expanding crack spreads.

Courtesy – AHL Research.