Pakistan’s listed fertiliser sector posted a 9% year-on-year increase in consolidated profitability in the first nine months of CY26, with profit after taxation (PAT) rising to Rs110.4 billion from Rs100.8 billion in the same period last year, according to a report by AHL Research.

The brokerage house attributed the improvement primarily to stronger gross profitability, supported by a 12.6% increase in revenue and a 140-basis-point expansion in gross margins. However, earnings growth remained modest because of higher operating expenses, finance costs, and taxation, along with lower other operating income.

According to AHL Research, the sector generated revenue of Rs672.3 billion during 9MCY26, up 12.6% from the same period last year. Improved operating performance drove the earnings uplift, although rising costs limited the impact on the bottom line.

On a quarterly basis, the fertiliser sector reported PAT of Rs41.0 billion in 3QCY26, up 10.8% from the corresponding quarter last year. However, profitability fell 9.7% to Rs41.0 billion from Rs45.4 billion in 2QCY26, mainly due to a sharp drop in other operating income and higher financial charges.

Revenue rose 10.7% year-on-year to Rs271.2 billion and 22.6% quarter-on-quarter, indicating improved sales momentum.

AHL Research noted that while the sector’s profitability continues to benefit from stronger gross margins and revenue growth, the sustainability of earnings expansion will depend on the pricing environment, cost pressures and the contribution of non-core income in the coming quarters.