Karachi: According to an analysis by AKD Securities Limited, Engro Polymer and Chemicals Limited (EPCL) is expected to post a loss of PkR829 million for the second quarter of the calendar year 2025. This is a continuation of the financial challenges faced by the company, which reported a loss of PkR688 million during the same period last year.

The anticipated losses are attributed to a projected 4% year-on-year decline in revenue, driven by lower prices for polyvinyl chloride (PVC). The company is also experiencing pressure on its gross margins, which are expected to contract to 5.1%. This contraction is largely due to increased gas prices and reduced core margins for PVC.

In light of these financial conditions, AKD Securities Limited has maintained its "SELL" recommendation on EPCL stock, setting a target price of PkR30 per share by December 2025. The outlook suggests that higher energy costs and continued pressure on margins will likely hinder the company’s profitability in the coming quarters.