The fertilizer industry slowed in August 2026, with overall offtakes declining due to a high base last year, monsoon disruptions, and regional restrictions on urea distribution in parts of KPK and Balochistan. Despite the monthly dip, cumulative Kharif season (Apr–Aug) sales remained resilient, posting a 3% YoY increase to 2.8mn tons.

According to AKD Research, nutrient sales across the portfolio weakened: Urea down 14% YoY to 701k tons, DAP down 8% YoY to 126k tons, CAN down 3% YoY to 68k tons, and NP plunging 49% YoY to 41k tons. The decline in DAP was particularly sharp, driven by record‑high prices following the Middle East conflict, with bag prices peaking at PKR 16,800 and averaging 23% higher YoY during the season.

Engro Fertilizers (EFERT): Urea sales surged 17% YoY to 326k tons, supported by higher inventory availability. Market share jumped to 47% from 34% last year. DAP sales doubled, lifting share to 12% from 5%. Inventory eased to 553k tons, representing 78% of industry stock.

Fauji Fertilizer Company (FFC): Urea sales fell 30% YoY to 226k tons, reducing market share to 32% from 40%. DAP sales declined 15% YoY to 91k tons, with inventory at 141k tons (56% of industry). Market share slipped to 72% from 78%.

Fatima Fertilizer (FATIMA): Urea sales dropped 20% YoY to 140k tons, ending a five‑month upward streak. Market share eased to 20% from 21%. Inventories fell to a 2.5‑year low of 53k tons. CAN sales dipped 3% YoY, while NP sales fell 46% YoY.

AKD Research projects CY26 urea offtakes at ~6.5mn tons, supported by sustained demand and budgetary measures. The brokerage maintains an overweight stance on the fertilizer sector, citing robust earnings, strong cash flows, and attractive dividend yields. FFC remains the top pick, with a December 2026 target price of PKR 801/share.