Engro Fertilizers posts record quarterly sales as urea offtake surges

Engro Fertilizers Ltd. (EFERT) reported an all-time high quarterly sales revenue of about PKR 102 billion in the fourth quarter of 2025, driven by record urea offtake.

Net sales of the company rose 20% from a year earlier and 86% from the previous quarter to PKR 101.7 billion in 4QCY25.
Urea offtake jumped 47% year-on-year to 1.03 million tons during the quarter, compared with 705,000 tons a year earlier and 589,000 tons in the preceding quarter.

On a quarterly basis, urea offtake increased 76%, while DAP offtake surged more than fourfold.

The company posted earnings per share (EPS) of PKR 6.26 in 4QCY25, down 19% from a year earlier but up 44% from the previous quarter. Profit after tax stood at PKR 8.3 billion, rising 44% quarter-on-quarter, though the result came in below market expectations.

EFERT announced a final cash dividend of PKR 4 per share for the quarter, bringing total dividend per share for CY25 to PKR 15.

The fourth-quarter payout was lower than expectations, partly due to a one-off super tax charge of PKR 2.0 billion recognized during the period. The company’s payout ratio declined to 88% from 102% last year.

Despite higher sales volumes, margins came under pressure. Gross margins fell to 27.7% in 4QCY25, compared with 31.3% in the same quarter last year and 32.6% in 3QCY25, mainly due to discounts offered on urea and a higher contribution from lower-margin DAP sales.

Distribution expenses increased 23% year-on-year to PKR 8.28 billion in the quarter, while financial charges rose 40% from a year earlier and 62% from the previous quarter to PKR 2.05 billion, reflecting higher borrowings and working capital requirements.

The effective tax rate climbed to 48.8% in 4QCY25, compared with 37.5% a year earlier and 39.3% in the previous quarter, largely due to the one-off tax charge.

For the full year CY25, EPS declined 20% from a year earlier, as lower net sales, thinner gross margins and higher distribution costs weighed on profitability, the company said.