Karachi: Urea offtakes in Pakistan have shown a modest improvement for the second consecutive month as the Kharif season demand gains momentum. Sales of urea and calcium ammonium nitrate (CAN) have risen by 2% and 34% year-over-year, respectively, while diammonium phosphate (DAP) and nitrophosphate (NP) sales have experienced a decline of 58% and 7% year-over-year, respectively.

According to AKD Securities Limited, sales from major players in the sector have varied significantly. Fauji Fertilizer Company (FFC) and Fatima Fertilizer Company (FATIMA) have reported increases in urea sales by 14% and 72% year-over-year, respectively. In contrast, Engro Fertilizers (EFERT) saw a 49% decline in urea sales, attributed to higher prices in June 2026.

Despite the mixed sales performance, AKD Securities Limited maintains an optimistic outlook on the sector, citing a stable earnings forecast and attractive dividend yields. FFC and Engro Corporation (ENGROH) are highlighted as preferred picks within the sector due to their strong market positions and financial stability.