ENGRO Holdings Limited (ENGROH) posted consolidated profit after tax of Rs10.47 billion in the third quarter of CY2026, translating to earnings per share (EPS) of Rs8.69, up 17 percent year-on-year, according to a research review by AHL Research.
The brokerage house attributed the earnings growth primarily to stronger profitability from Engro Fertilizers (EFERT), the commencement of earnings from the group’s telecom tower business, and improved performance by FrieslandCampina Engro Pakistan Limited (FCEPL). The company announced no dividend for the quarter.
AHL Research noted that quarterly profitability also rose significantly sequentially, as higher earnings from EFERT, the tower business, and Engro Powergen Qadirpur Limited (EPQL) more than offset lower contributions from Engro Powergen Thar Limited (EPTL), FCEPL, Engro Polymer & Chemicals Limited (EPCL), and the terminal business.
The research house highlighted that ENGRO Holdings’ borrowings remained elevated at Rs329 billion due to financing requirements for the telecom tower acquisition, resulting in a 12 percent year-on-year increase in finance costs to Rs12.9 billion.
According to AHL, EFERT remained the key earnings driver, reporting profit of Rs9.1 billion during the quarter, up 57 percent year-on-year, supported by a recovery in urea offtakes and stronger fertilizer demand. The company announced a dividend of Rs5.50 per share.
In the power segment, EPQL posted profit of Rs354 million, supported by improved plant utilization and seasonal factors, while EPTL reported profit of Rs7.6 billion, below market expectations.
AHL Research estimated that the telecom tower business contributed around Rs1.9 billion to earnings during the quarter. However, high financing costs associated with the acquisition constrained profitability.
Meanwhile, EPCL reported a loss of Rs1.3 billion, while FCEPL contributed a strong Rs825 million to ENGRO Holdings’ earnings during the quarter.
Maintaining a positive outlook, AHL Research reiterated its “Buy” stance on ENGRO Holdings with a June 2027 target price of Rs360 per share, citing attractive valuation multiples and expected earnings growth.
