Pakistan’s listed fertiliser sector recorded a profit of Rs141.1bn, up by 10% YoY. The YoY increase is primarily driven by 1) higher urea offtakes, 2) higher other income, and 3) lower other charges. In 4Q2025, profits reached Rs38.1bn, down by 2% YoY but up 3% QoQ, according to a report from Topline Pakistan Research.
– The net sales of the sector amounted to Rs981.6bn in 2025, up by 7% YoY, supported by higher Urea and DAP offtakes. In 4Q2025, revenue increased by 8% YoY and 41% QoQ to Rs361.0bn.
– During 2025, Urea offtakes rose by 2% YoY to 6.7mn tons, while DAP offtakes declined by 18% YoY to 1.34mn tons. Similarly, in 4Q2025, Urea offtakes surged by 26% YoY and 36% QoQ to 2.5mn tons.
– The sector’s gross margins slightly declined to 31% in 2025, mainly due to discounts offered by companies. Margins also fell to 27% in 4Q2025 from 29% in 4Q2024 and 32% in 3Q2024. For instance, EFERT offered discounts ranging between Rs300-400 per bag, and FFC between Rs100-200 per bag in 4Q2025.
– Other income increased by 20% YoY to Rs24.8bn in 2025, primarily due to higher dividend income from FFC’s energy businesses, amounting to Rs9bn, and Rs7bn from PMP. On a quarterly basis, other income decreased by 32% YoY and 23% QoQ to Rs10.7bn in 4Q2025.
– Other charges decreased by 32% YoY to Rs21.7bn in 2025. In 4Q2025, charges also declined by 40% YoY but increased by 18% QoQ to Rs6.6bn. The reduction was mainly due to the absence of FFC’s impairment charges on investments and subsidy receivables in 4Q2024.
– The sector’s finance costs rose by 9% YoY to Rs24.8bn in 2025, although they decreased by 8% YoY but increased by 16% QoQ to Rs6.8bn in 4Q2025.
– Additionally, fertiliser sector companies disbursed Rs111.8bn in dividends to shareholders during 2025, a 72% YoY increase.
– For analysis, FFC is considered on an unconsolidated basis, while EFERT and FATIMA are examined on a consolidated basis to reflect their fertiliser operations.
– FFC: Company sales grew by 16% YoY, reaching Rs432.4bn in 2025. During 4Q2025, sales remained flat YoY but increased by 18% QoQ to Rs149.7bn. Gross margins narrowed to 30% in 2025, partly due to a provision of Rs14.13bn against sales tax receivables. In 4Q2025, gross margins stood at 25%, compared to 31% in 3Q2025 and 26% in 4Q2024.
– FFC reported profits of Rs73.5bn (EPS: Rs51.12) in 2025, a 14% YoY increase driven by higher dividend income from energy businesses, leading to a 13% YoY rise in other income. In 4Q2025, profits amounted to Rs15.9bn (EPS: Rs11.07), up 12% YoY but down 17% QoQ, due to a one-off sales tax expense.
– EFERT: EFERT’s sales declined to Rs237.1bn, down 8% YoY in 2025. Quarterly sales increased by 20% YoY and 86% QoQ to Rs101.7bn. Gross margins improved to 31% in 2025 from 28% in 2024, but decreased to 28% in 4Q2025 from 31% in 4Q2024 and 33% in 3Q2025, primarily due to higher discounts (Rs300-400 per bag).
– The company’s profit fell by 20% YoY to Rs22.6bn (EPS: Rs16.95) in 2025, mainly due to lower margins and a 49% YoY increase in finance costs, driven by a 68% YoY rise in total debt. In 4Q2025, earnings were Rs8.4bn (EPS: Rs6.26), down 19% YoY but up 44% QoQ.
– FATIMA: FATIMA’s sales increased by 7% YoY to Rs276.1bn in 2025. In 4Q2025, sales rose by 13% YoY and 55% QoQ to Rs97.3bn, supported by higher urea offtakes at 185k tons. Gross margins were at 34% in 2025, down from 36% in 2024. In 4Q2025, margins stood at 31%, compared to 35% in 3Q2025 and 32% in 4Q2024.
– FATIMA recorded a 15% YoY profit increase, reaching Rs42.1bn (EPS: Rs20.03), mainly due to a 49% YoY decrease in other charges and the absence of impairment losses. In 4Q2025, profits were Rs13.1bn (EPS: Rs6.26), down 4% QoQ but up 10% YoY.
– Outlook: We expect the industry to remain stable, supported by strong urea demand and seasonal agricultural activities. Margins are also likely to ease as dealer discounts are rolled back and urea inventory levels return to normal.
