Karachi: KSE-100 index companies have reported a 34 percent increase in profitability in the fourth quarter of fiscal year 2026, reaching Rs609 billion, according to a recent press release. For the entire fiscal year, earnings rose by 18 percent to Rs2.01 trillion, with cash dividends up by 11 percent to Rs904.4 billion.

According to JS Global, the exploration and production (E&P) sector saw a substantial rise in profitability, driven by a significant tax reversal, while the banking sector's earnings increased by 3 percent year-over-year but faced a slight quarterly decline due to higher non-interest expenses. The cement sector also reported robust performance with a 27 percent year-over-year increase in profits, supported by higher net sales and other income. Meanwhile, the automobile sector experienced a 42 percent year-over-year rise in earnings.

The fertilizer sector reported a 35 percent year-over-year growth in profitability, mainly due to higher urea sales, while the food and personal care sector faced margin pressure due to Middle East conflicts, resulting in a 13 percent quarterly decline. The refinery sector posted a 132 percent year-over-year increase in profitability, despite a quarterly decline attributed to inventory losses. Conversely, the pharmaceutical sector saw a 10 percent year-over-year decrease in profitability.

Other sectors, such as power, chemicals, and textiles, exhibited year-over-year earnings growth, while oil marketing companies reported losses due to inventory issues. The analysis covered 88 companies, representing approximately 96 percent of the KSE-100 market capitalization, with dividends seeing a significant increase in the fiscal year-end pattern.