Karachi: Corporate earnings for companies listed on the KSE-100 index in Pakistan rose by 13% year-on-year in the first quarter of fiscal year 2026, according to a recent analysis by JS Global. Total earnings reached Rs458 billion, compared to Rs407 billion in the same period last year, with dividends seeing an impressive 22% increase.

Despite a decline in interest rates, the banking sector experienced a 7% rise in earnings, amounting to Rs164 billion. This growth was attributed to an increase in Net Interest Income and a shift from provisioning to reversals.

The exploration and production (E and P) sector faced a 7% decrease in profitability, driven by reduced hydrocarbon output due to gas curtailment. Fertilizer companies, however, saw an 8% increase in profits, bolstered by higher sales volumes.

The cement sector reported a 21% growth in earnings, fueled by increased domestic and export volumes, although profits dipped slightly quarter-on-quarter. The automobile sector posted a 23% rise in earnings, thanks to a surge in passenger car sales, while the food and personal care sector's profits grew by 9% year-on-year.

Oil marketing companies (OMCs) recorded significant gains, with a 108% increase in profitability due to inventory gains and higher sales. Pharmaceuticals also saw notable growth, with a 20% rise in profits.

Despite a decline in dividends from some sectors, the overall dividend payout increased to 34% from 31% in the previous year, totaling Rs154 billion. The banking sector remained the largest contributor, with United Bank Limited, Meezan Bank, and MCB Bank leading the payouts.

The report by JS Global analyzed 92 companies, representing 97% of the KSE-100 market capitalization, and concluded that additional data would not significantly alter the observed growth trends.