MCB Bank Limited (MCB): Earnings soften amid margin compression and normalization of non-core income – By HMFS Research

Feb 4 2026

HMFS Research

• MCB Bank Limited (MCB) has announced its consolidated results for the year ended December 31, 2025, reporting profit after tax of PKR 58.8bn, translating into EPS of PKR 49.29 (in line with our expectations), down ~7.6% Y/Y compared to PKR 63.5bn (EPS: PKR 53.35) in CY24. The earnings decline largely reflects pressure on net interest income, higher operating costs, and normalization in non-markup income, partially offset by lower provisioning charges. On the payout front, MCB gave PKR 36/ per share as dividend with PKR 9 distributed in its final quarter (also in line with HMFS expectations).

• Net markup/interest income declined ~4% Y/Y to PKR 161.2bn, primarily due to, a sharp rise in interest expense (~32% Y/Y). Non-markup income rose trivially by ~0.4% Y/Y to PKR 41.4bn Aided by improved FX income (~13% Y/Y), sharp increase in Dividend income (~52% Y/Y), and Income from derivates (~3x Y/Y).

Pakistan Market Wrap: Bullish Momentum Holds Firm – By HMFS Research

Feb 4 2026

HMFS Research

• The KSE-100 Index maintained its bullish trajectory during today’s trading session, supported by strengthening economic indicators, optimism surrounding the potential inclusion of Pakistani equities in the JP Morgan Frontier Markets Index, expanding export volumes to China, and improving bilateral trade relations with key partner economies. The positive sentiment kept investor participation buoyant, enabling the benchmark to close at 187,832, marking a gain of 931 points from the previous session.

• Trading activity remained robust, with 768mn shares exchanged on the KSE-100 Index and 1.19bn shares traded across the broader market. KEL (591mn shares) emerged as the top volume leader, followed by WAVESAPP (36mn shares) and FNEL (33mn shares). Market momentum is expected to remain constructive, supported by the ongoing corporate results season as investors recalibrate portfolios in response to earnings announcements. While elevated valuations may trigger intermittent profit-taking spells, the overall market outlook remains favourable. Investors are advised to remain vigilant, closely monitor evolving developments, and focus on fundamentally strong stocks offering sustainable long-term growth potential.

Pakistan Market Wrap: Evening Chronicle – By AHCML Research

Feb 4 2026

Al Habib Capital Markets

• The benchmark KSE-100 Index continued its upward momentum, surging to an intraday high of 188,312 before settling at a new all-time high of 187,832, registering a gain of 931 points (0.50%). Gains were driven by broad-based buying, led by Commercial Banks with selective strength in Power Generation & Distribution.

• On the macro front, Pakistan and Kazakhstan signed 36 agreements and MoUs across multiple sectors, including petroleum, mining, and maritime affairs, with the Prime Minister reiterating the $1bn bilateral trade target. In terms of index contribution, MEBL, ENGROH, NBP, UBL, & HMB, emerged as key drivers, collectively adding 739.61 to the benchmark. On the volumes front, KEL led activity with 590.87 million shares; while overall market turnover stood at 1,193.66 million shares, reflecting healthy participation.

Engro Powergen Qadirpur Limited (EPQL): 4QCY25 Result Review – By Taurus Research

Feb 4 2026

Taurus Securities

• Board Meeting: February 04, 2026.

• 4QCY25 LPS: PKR 0.05; DPS: PKR 1.25; LAT: PKR 15Mn, down 1.0xYoY over the SPLY – below expectations.

• EPQL’s net sales clocked-in at PKR 3.2Bn in 4QCY25, down 4%QoQ due to lower plant utilization. Gross margins hovered at 6%, down 8pptsQoQ on account of increase in fuel cost component. Moreover, CY25 sales dropped 10%YoY on the back of major scheduled outage in 2025 and reduction in capacity payments due to implementation of hybrid take & pay model. CY25 PAT down 61%YoY due to PPA revisions in addition to lower utilization level. On a sequential basis, EPQL posted a LAT of PKR 15Mn (LPS of PKR 0.05) as a lower topline has wiped out the earnings during the quarter. Lastly, the Company announced a final cash dividend of PKR 1.25 for the quarter, taking the total payout to PKR 11.75 for the year.

MCB Bank Limited (MCB): 4QCY25 EPS clocked in at PKR11.9 – By Insight Research

Feb 4 2026

Insight Securities

• MCB has announced its 4QCY25 result, wherein it has posted MCB (PKRmn) 4QCY25 4QCY24 3QCY25 YoY QoQ CY25 CY24 YoY consolidated PAT of PKR30.2bn (EPS: PKR11.9) vs. PAT of PKR27.2bn (EPS: PKR8.9) in SPLY. The result came inline with our expectations.

• Net interest income recorded an increase of 4% YoY, while it remained flat on QoQ basis.

Pakistan Cement: South exports amplified industry utilization – By Foundation Research

Feb 4 2026

Foundation Securities

• Cement sector dispatches rose by 12.4% YoY in Jan’26 to 4.5Mn tons, resulting in enhanced capacity utilization of 60.7% vs. 55.6% in the SPLY. Despite peak winter season, local sales continued their growth momentum exhibiting a jump of 4.2% YoY to 3.6Mn tons, portraying demand recovery trend amid improved macros. Similarly, exports spiked to 0.9Mn tons with a remarkable growth of 61.1% YoY. Resurgence in exports were on account of low base effect from South exports, even in the absence of North exports due to Afghan border closure and also compensating for weakness in domestic demand in the South region.

• Seasonality witnessed on a MoM bases where local demand fell by 3.4% given fewer day light hours, fog etc. This decline was driven by North sales exhibiting a decline of 6.5% MoM which was compensated by uptick in South sales of 13.8% MoM. However, exports in North region were significantly impacted owing to Afghan border closure. Increase in both local dispatches and exports of South region MoM resulted in overall industry dispatches reaching 4.5Mn tons, maintaining growth of 4.4% MoM.

Interloop Limited (ILP): Earnings Beat Expectations on Higher Other Income – By IIS Research

Feb 4 2026

Ismail Iqbal Securities

• ILP reported an unconsolidated EPS of PKR 2.47 for 2QFY26, up 3x YoY and 24% QoQ, materially above our expectation of PKR 1.9. The earnings surprise was largely driven by higher than expected other income, which we believe likely stems from derivative financial instruments, similar to last quarter, where other income of PKR 700mn was primarily attributable to FX derivative gains on forward dollar bookings. However, detailed account is awaited. The results were accompanied by a cash dividend of PKR 2.00 per share, which was above consensus expectations and likely reflects an improved cash position.

• Net sales clocked in at PKR 43.6bn, up 3% YoY but flat QoQ. Cost discipline remained evident as cost of sales declined 2% YoY, leading to an improvement in gross margins to 24% versus 23% in the previous quarter and 20% in 2QFY25. This margin expansion reflects better pricing, product mix, and input cost management.

Interloop Limited (ILP): Strong Earnings Beat and Enhanced Shareholder Returns – By HMFS Research

Feb 4 2026

HMFS Research

• Interloop Limited reported earnings well above HMFS expectations of PKR 1.9/share, delivering an EPS of PKR 2.47, marking an impressive 201% year-on-year growth. The company also declared a dividend of PKR 2/share, reinforcing shareholder value.

• Revenue increased modestly by 3%, while gross profit expanded by 22%, supported by stable cost of sales. Operating and selling expenses declined, further strengthening operational efficiency.

Pakistan Cement: Jan’26 dispatches up 4%MoM – By Taurus Research

Feb 4 2026

Taurus Securities

• Total cement dispatches in Jan’26 went up 4%MoM to 4.54Mn tons i.e. domestic sales down 3%MoM while exports were up significantly by 51%MoM. Decrease in domestic sales was at tributed to lower construction demand amid winter effect, also a resultant effect of higher construction material cost, duties and taxes—cement manufacturers have requested the Government to give concessions on duties and taxes by framing an industry-friendly policy in order to support construction activities, making cement viable domestically as well as for exports. Further, North players are concerned as exports were Nil for the third consecutive month due to the border closure with Afghanistan, searching for alternative destinations like Sri Lanka and Bangladesh via the Sea route.

Oil Marketing Companies: Jan’26 Volumes up 10%YoY and 12%MoM – By Taurus Research

Feb 4 2026

Taurus Securities

• Petroleum products off-take for Jan’26 stood at ~1.5Mn tons, reflecting an increase of 12%MoM and 10%YoY respectively. MS volumes increased 2%MoM and 3%YoY. Meanwhile, HSD volumes increased by 20%MoM and 11%YoY, respectively. During 7MFY26, industry volumes were up 3%YoY with MS and HSD up 3%YoY and 4%YoY, respectively.

• Industry sources report a combination of factors that the MoM increase was a result of, particularly economic recovery and ease in inflation. Moreover, it was noted that fuel prices experienced a 20% annual drop in 2025 amid lower cost of supply—driving demand, along with higher passenger car sales supporting demand as well.