Karachi: Engro Holdings Limited (ENGROH) revealed its financial performance for the first half of the calendar year 2026 during a corporate analyst briefing, highlighting a mixed bag of financial outcomes and strategic realignments. The company reported consolidated earnings of Rs15.1 billion, marking a 45% year-over-year increase in earnings per share. However, excluding the previous year's one-off gains, earnings showed a significant decline.
According to JS Global, the company's revenue for 1HCY26 increased by 4.8% year-over-year to Rs259 billion from Rs247 billion. Despite this rise, consolidated earnings per share dropped 56% to Rs15.46, largely due to the absence of one-off gains totaling Rs48.4 billion. When excluding these gains, earnings rose by 45.5% year-over-year to Rs30.4 billion, translating into an EPS of Rs15.46.
The company's owners' share of profitability saw a notable increase to Rs18.6 billion from Rs10.4 billion year-over-year, excluding the one-off gains. This was primarily driven by the inclusion of Deodar's financial results and improved performance across group companies such as Engro Polymer and Chemicals Limited (EPCL). The company also benefited from higher other income from the SIDC remeasurement gain and lower finance costs in the energy vertical. However, these gains were partially offset by higher minimum taxes in Elengy and subdued sales volumes at Engro Fertilizer Limited (EFERT).
On a standalone basis, Engro Holdings reported a substantial rise in dividend income to Rs6.26 billion in the second quarter of 2026, primarily driven by higher dividends from Engro Corp. Despite this, no dividend was announced for the quarter as Engro Holdings focuses on strengthening its balance sheet and pursuing high-return internal opportunities and external growth.
Engro Connect, a key subsidiary, reported a remarkable 215% increase in revenue to Rs41 billion, while profitability improved to Rs3.9 billion from a previous loss. The subsidiary is expanding its footprint across Pakistan, aiming to capitalize on rising connectivity demand and 5G adoption.
Engro Fertilizer Limited reported a decline in revenue and profit, attributed to decreased urea sales volumes and higher product prices compared to competitors. However, management expects inventory levels to normalize by year-end, supported by the upcoming Rabi season and potential government subsidies.
Engro Polymer and Chemicals Limited saw a moderate increase in revenue and profitability, driven by higher PVC prices and increased HPO sales. The energy segment also experienced growth, with Engro Energy reporting an increase in net profit, aided by lower finance costs and a strong asset portfolio performance.
Engro Elengy Terminal Limited and Vopak Terminal Pakistan Limited reported declines in topline and net profit due to lower LNG imports and reduced terminal utilization. Despite these challenges, the renewal of the Implementation Agreement for another 30 years presents new business development opportunities.
Engro Eximp FZE, the company's Dubai-based trading business, reported a 24% increase in topline, with profit rising 48% year-over-year. Despite supply chain disruptions, the business continues to focus on diversifying its product portfolio and geographic footprint.
Finally, Friesland Campina Engro Pakistan reported significant growth in topline and profitability, driven by improved margins in value-added products and cost optimization initiatives. However, management cautioned that future margins could be affected by consumer purchasing power and potential tax changes on packaged milk.