Karachi: AGP Limited has announced its earnings for the third quarter of 2026, reporting a mixed financial performance. The company's earnings per share (EPS) for the quarter stood at Rs3.03, marking an 18% decrease year-over-year but a 41% increase quarter-over-quarter. The overall earnings fell short of market expectations due to lower-than-anticipated revenue figures.

According to JS Global, AGP Limited's net sales for the third quarter reached Rs6.5 billion, reflecting a 15% decline compared to the same period last year, though a 38% increase from the previous quarter. The year-over-year sales decline was attributed mainly to reduced export volumes to Afghanistan. However, the quarter-over-quarter improvement was credited to a shift in seasonal conditions as the country approaches winter. Cumulatively, the company's sales for the first nine months of 2026 totaled Rs17.9 billion, down by 12% compared to the previous year.

The company's gross margins improved to 64.6% in the third quarter, compared to 62.0% in the same quarter last year and 61.2% in the second quarter of 2026. Distribution costs decreased by 4% year-over-year to Rs2.1 billion but rose by 24% quarter-over-quarter, maintaining a flat trajectory for the nine-month period.

Finance costs for the quarter reached Rs403 million, representing a 12% year-over-year increase and a 17% quarter-over-quarter rise. The finance cost for the first nine months of 2026 was Rs1.0 billion, showing a 4% decline year-over-year. Additionally, the company's effective tax rate (ETR) for the third quarter was recorded at 26.9%, compared to 37.4% in the same period last year and 10.0% in the second quarter of 2026.

The results have led to a maintained buy stance on AGP Limited, with the stock trading at a projected price-to-earnings ratio of 14.4x for 2026 and 11.0x for 2027.