Karachi: Engro Fertilizers Limited (EFERT) announced a robust financial performance for the third quarter of the calendar year 2026 during a corporate analyst briefing held today. The company reported consolidated earnings of Rs9.1 billion, marking a 57% increase from the previous year, with earnings per share reaching Rs6.83. A dividend of Rs5.50 per share was declared for the quarter, an increase from Rs4.50 in the same period last year.

According to JS Global, EFERT's topline surged to Rs79.6 billion, a 45% year-over-year growth, attributed to higher sales volumes and improved pricing strategies. Despite the increased revenue, the company's debt rose to Rs79 billion, primarily due to working capital needs and business expansion requirements. EFERT maintained a gross margin of 34% for the nine-month period ending September 2026, while net profits rose by 14% year-over-year.

EFERT's market share reached 38% in the third quarter, achieved without offering discounts, through strategic planning and efficient supply-chain management. Favorable crop economics, with higher prices for maize, cotton, and paddy, supported farmer returns, although rising diammonium phosphate (DAP) prices constrained affordability and demand. The management noted that escalating fuel prices contributed to increased farm input costs.

The company reiterated its commitment to maintaining a high dividend payout ratio. EFERT's base plant currently receives 40% of its gas under the Fertilizer Policy and 60% under the Petroleum Policy. The management also outlined plans to shift focus to Ghazij reserves as the HRL reserves begin to deplete. Progress continues on the Pressure Enhancement Facility, with Phase 1 Scope 2 expected to conclude by the third quarter of 2026 and Phase 2 by the first quarter of 2027.