Karachi: Engro Holdings Ltd. (ENGROH) announced a significant increase in its consolidated earnings during its recent analyst briefing, reporting earnings of PkR42.0 billion (EPS: PkR34.9) for the first nine months of 2025. This represents a fourfold year-over-year increase primarily due to the reclassification of its energy portfolio to continued operations, which accounted for PkR26.9 billion (PkR22.3 per share) of the earnings.

Despite the impressive headline figures, the company’s recurring earnings stood at PkR15.2 billion (EPS: PkR12.6), compared to PkR13.6 billion (EPS: PkR11.3) in the corresponding period last year. Engro’s management highlighted that significant payouts are not anticipated until the end of 2026, as profits are being retained to support the acquisition of Deodar Pvt. Ltd.

The acquisition of Deodar, which includes Jazz's tower portfolio, has resulted in a substantial increase in Connect’s site count, rising to 15,078 from 4,143 in the same period last year. Management reported that Deodar's performance has surpassed initial feasibility expectations. However, an increase in the minimum turnover tax rate, as outlined in the recent federal budget, is expected to maintain a higher effective tax rate for Deodar in the near term.