Karachi: Engro Polymer and Chemicals Ltd. (EPCL) has announced a notable turnaround in its financial performance for the first quarter of 2026, reporting a profit of PkR371 million (EPS: PkR0.3) after enduring four consecutive quarters of losses. This recovery is largely attributed to enhanced core-delta margins, according to the company's latest financial disclosures.

According to AKD Securities Limited, the company's revenue rose by 24% year-on-year, reaching PkR22.2 billion. This increase was supported by higher international PVC prices, improved premiums, and anticipated growth in offtakes. The gross margins for the quarter also saw an improvement, climbing to 11.5% from 7.9% in the same period last year, driven by a 16% year-on-year rise in average PVC-Ethylene core margins to US$354 per ton.

Furthermore, the company experienced a reduction in operating expenses, which decreased by 4% year-on-year to PkR614 million from PkR639 million. This decline was primarily due to a 14% drop in administrative expenses, reflecting EPCL's ongoing efforts to streamline operations and enhance efficiency.