Engro Holdings Ltd. (ENGROH) announced its 4QCY25 results, reporting consolidated earnings of PkR13.6bn (EPS: PkR11.3) compared to PkR9.6bn (EPS: PkR8.0) in SPLY, up 41%YoY. Earnings came in above our expectations, mainly due to an admin expense reversal and lower-than-anticipated tax expense. The company did not announce a dividend due to increased cash requirements for the Deodar acquisition.

·        Company reported admin expense reversal of PkR1.3bn, likely attributable to adjustments in transaction fee related to Deodar acquisition; we await further clarity on this.

·        Segment wise, energy portfolio has contributed PkR4.3bn (PkR3.6/sh) during 4QCY25, as per our estimates. Wherein, EPTL, SECMC, and EPQL are expected to have contributed PkR3.0/0.5/0.0 per share.

·        EFERT reported a decline of 19%YoY in earnings to PkR8.4bn in 4QCY25, mainly due to i) higher discount offering during the quarter despite higher urea offtakes and ii) higher taxation.

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Courtesy – AKD Research