Pakistan’s Oil Marketing Company (OMC) sector delivered a sharp earnings rebound during the first nine months of fiscal year 2026, with cumulative profits climbing 130 percent year-on-year to Rs. 52.9 billion, compared to Rs. 22.9 billion recorded in the corresponding period last year.

The strong performance was largely supported by sizeable inventory gains, particularly during the third quarter of FY26, when rising petroleum prices significantly lifted margins. Higher average selling prices across fuel products, combined with a notable decline in financing expenses, further strengthened sector profitability.

Data compiled in a sector review released by Arif Habib Limited showed that total gross profit for the industry surged 86 percent YoY, reaching Rs. 161.3 billion, while overall gross margins improved to 6.2 percent.

Interestingly, the earnings expansion came despite a modest 3 percent decline in net revenues, which stood at Rs. 2.61 trillion during the period. Analysts attributed the profit growth primarily to cost-side improvements, as finance costs fell sharply by 35 percent YoY to approximately Rs. 20 billion, providing substantial relief to company balance sheets.

Among major KSE-100 listed players, Pakistan State Oil (PSO) emerged as the top contributor, posting a 149.6 percent increase in profit after tax to Rs. 38.1 billion during 9MFY26.

Attock Petroleum Limited (APL) also reported robust financial performance, with net earnings rising 91.8 percent YoY to Rs. 14.7 billion, reflecting improved margins and operational efficiency across the sector.

Overall, the OMC industry’s performance highlights how elevated fuel prices, inventory revaluation gains, and reduced borrowing costs combined to drive a significant earnings upswing during the fiscal year.