April 20, 2026 (MLN): Engro Fertilizers Limited (PSX: EFERT) reported a solid 14% increase in its consolidated net profit, reaching Rs3.32bn for the  quarter ended March 31, 2026, up from Rs2.90bn in the corresponding period last year.

Reflecting this steady bottom-line growth, the company's earnings per share (EPS) expanded to Rs2.49 from Rs2.17 in SPLY.

The company also declared dividend at Rs2 per share.

The growth was primarily anchored by strong top-line performance, although inflationary pressures on production costs squeezed margins.

The company’s net sales registered a healthy 25% year-on-year increase, rising to Rs37.79bn from Rs30.29bn. However, the cost of sales outpaced revenue growth, surging 33% to Rs26.06bn.

Despite this margin compression, the sheer volume of sales allowed gross profit to grow by 10%, reaching Rs11.73bn compared to Rs10.68bn in the prior year.

At the operational level, Engro Fertilizers demonstrated excellent cost control.

Selling and distribution expenses remained largely flat, edging up just 1% to Rs3.26bn, while administrative expenses were trimmed by 3% to Rs1.20bn. Thanks to these tightly managed overheads, the core operating profit subtotal jumped 17% to Rs7.28bn.

Below the operating line, the company experienced mixed results. Other income grew by 22% to Rs382.38m, providing a nice buffer.

However, the company faced a 31% spike in finance costs, which rose to Rs1.43bn. Furthermore, EFERT booked a loss on subsidy receivable from the GoP amounting to Rs129.56m, a turnaround from a gain of Rs10.52m recorded in the same period last year.

Despite the heavier debt-servicing burden and the subsidy loss, profit before taxation still managed a 13% improvement, settling at Rs5.56bn. After accounting for an 11% higher taxation expense of Rs2.24bn, the company securely closed the quarter with its Rs3.32bn net profit.