Karachi: Engro Polymer and Chemicals Limited (EPCL) is anticipated to report a loss of PkR576 million for the first quarter of the calendar year 2025, according to a preview by AKD Securities Limited. This projection follows a loss of PkR901 million in the same period last year, with the company's performance hindered by increasing energy costs despite gains in sales volume.

The analysis, released by AKD Securities Limited, highlights that EPCL's gross margins are expected to remain stagnant at 6.4% year-on-year. The rise in average gas prices is predicted to counteract the benefits of improved offtakes, maintaining pressure on the company's financial health.

AKD Securities has maintained a "SELL" stance on EPCL, setting a target price of PkR30 per share for December 2025. The report underscores that the combination of elevated energy prices and stagnant margins is likely to continue challenging EPCL's profitability in the foreseeable future.