Karachi: Companies listed on Pakistan's KSE-100 index reported a 19% year-over-year increase in earnings for the third quarter of fiscal year 2026, reaching Rs491 billion, as per a recent press release. This represents an 8% rise from the previous quarter's earnings of Rs412 billion. When measured in U.S. dollars, the profitability amounted to $1.8 billion. Cumulatively, the KSE-100 index companies have posted earnings of Rs1,410 billion over the first nine months of FY26, marking a 10% increase compared to the same period last year.
According to JS Global, the oil marketing companies (OMCs) and refineries experienced significant profit increases due to inventory gains and higher gross refinery margins driven by rising oil prices. Excluding these sectors, the overall profit increase was 5% year-over-year but marked a 2% decline on a quarter-over-quarter basis.
The banking sector demonstrated a moderate 2% year-over-year profit growth, with a more robust 14% quarter-over-quarter rise, largely due to increased non-interest income and capital gains from investments by banks such as United Bank Limited, Bank Alfalah, and Faysal Bank. Meanwhile, the exploration and production sector saw a 25% quarter-over-quarter increase in profits, attributed to a 23% rise in crude oil prices.
The cement sector's earnings increased by 9% year-over-year, although they fell by 15% quarter-over-quarter due to reduced domestic dispatches and higher fuel costs. In contrast, the fertilizer sector witnessed a 4% decline in profits year-over-year and a 36% drop quarter-over-quarter, driven by decreased urea sales.
The automobile sector reported notable growth, with profits up 24% year-over-year and 28% quarter-over-quarter, spurred by a rise in passenger car sales. The food and personal care sector experienced a 15% year-over-year profit increase but a 45% quarter-over-quarter decline, primarily due to a high base effect from the previous quarter.
Other sectors showed varied performance, with the pharmaceutical sector posting a 27% year-over-year increase but a 29% quarter-over-quarter decrease in earnings. The power, OMCs, and chemicals sectors each demonstrated growth, with power showing a slight quarter-over-quarter increase and OMCs exhibiting substantial growth.
The press release also noted that 94 out of 100 KSE-100 index companies, representing 95.34% of the market capitalization, were included in this analysis. Cash dividends announced by these companies totaled Rs139.5 billion, reflecting a 2% year-over-year increase, although dividends declined by 54% quarter-over-quarter. The banking sector was the largest contributor to dividends, distributing Rs74 billion in the quarter.