Engro Fertilizers Limited posted a net profit of Rs. 9.1 billion in the third quarter of calendar year 2026, up 140 percent quarter-on-quarter and 57 percent year-on-year, according to a report by Arif Habib Limited.

The company earned Rs. 6.83 per share during the July-September quarter, compared with Rs. 4.35 per share in the same period last year.

Net sales increased 45 percent year-on-year to Rs. 79.6 billion, while gross profit rose 56 percent to Rs. 27.9 billion.

Engro Fertilizers announced a cash dividend of Rs. 5.50 per share, representing an 80 percent payout ratio. The dividend was higher than the Rs. 4.50 per share announced for the corresponding period last year. Arif Habib Limited said the payout ratio could reflect a cautious approach to capital allocation amid potential liabilities.

Urea Sales Surge in September

Engro Fertilizers’ urea sales jumped 175 percent quarter-on-quarter to 711,000 tons in September 2026, supported by better inventory availability and favorable farm economics.

Transporter strikes disrupted industry sales, while shutdowns at competing producers, including Fatima Fertilizer, Fauji Fertilizer Company and Agritech Limited, helped Engro Fertilizers increase its sales volumes and market share.

The company’s diammonium phosphate (DAP) sales also rose 168.4 percent year-on-year to 37,000 tons. Its gross margin stood at 35 percent during the quarter.

However, higher sales came alongside rising operating and financing expenses. Distribution costs increased 33 percent year-on-year to Rs. 7.1 billion, driven by higher sales volumes and rising fuel prices. Finance costs also increased 90 percent during the quarter.