Karachi: Engro Fertilizers Ltd. (EFERT) announced a 32% year-over-year decline in its consolidated earnings for the second quarter of the calendar year 2026, reporting a profit of PkR3.8 billion, down from PkR5.6 billion in the same period last year. This drop is attributed to lower offtakes, though earnings exceeded expectations due to a one-time remeasurement gain on SIDC provision. The company also declared a dividend of PkR1.75 per share, with a payout ratio of 61%.

According to AKD Securities Limited, EFERT's revenue for the quarter fell by 34% year-over-year to PkR33.1 billion. This was driven by significant declines in Urea and DAP offtakes, which dropped by 40% and 69% respectively. Despite the revenue decrease, gross margins improved to 35.8% from 31.4% in the same period last year, largely due to higher prices and an increased proportion of urea in the sales mix. Operating expenses increased by 2% year-over-year to PkR5.2 billion, primarily due to higher fuel prices affecting distribution costs, which outweighed the benefits of lower offtakes and reduced administrative costs.