Engro Fertilizers Limited (EFERT) delivered a strong financial performance during the third quarter of CY26, reporting a profit after tax of Rs9.1 billion, translating into earnings per share (EPS) of Rs6.8, up 57 percent from Rs5.8 billion (EPS: Rs4.4) recorded in the same period last year, according to details shared by the company and highlighted at its analyst briefing.

AKD Securities, in its post-briefing review, said earnings growth was driven mainly by higher revenue, supported by a 21 percent year-on-year increase in urea sales volumes and higher fertilizer prices.

Management informed analysts that EFERT’s urea sales rose to 711,000 tons during 3QCY26, with market share improving to 38 percent from 34 percent a year earlier. The company attributed the increase to strategic planning, timely supply chain execution, and favorable farm economics.

The company also announced a cash dividend of Rs5.50 per share, up from Rs4.50 per share in the corresponding quarter last year, and reiterated its commitment to maintaining healthy dividend payouts.

According to AKD Securities, industry urea inventories stood at 654,000 tons at the end of September 2026, down from 1.16 million tons a year earlier, with EFERT accounting for 80 percent of total stocks. Management remained optimistic about urea demand and said it plans no discounts, expecting CY26 industry demand in the range of 6.0-6.5 million tons.

The research house noted that EFERT also recorded significant growth in DAP sales, which increased to 43,000 tons from 17,000 tons a year earlier, lifting market share to 15 percent from 5 percent. However, management highlighted continued pressure on DAP margins because there is limited room for further price increases.

AKD Securities maintained its “Buy” recommendation on EFERT with a December 2026 target price of Rs264 per share, citing expected recovery in fertilizer demand, improving farm economics and easing inventory levels as key drivers of future growth.