KSE-100 companies post 8.8% profit growth to PKR 1.24 trillion in FY26's 9 months

Profitability of companies listed on Pakistan's KSE-100 index rose 8.8% year-on-year in the first nine months of fiscal year 2026, reaching PKR 1.243 trillion, according to a report by Arif Habib Limited.

The brokerage's analysis covers approximately 88% of the index's total market capitalization. Earnings growth was broad-based, with strong contributions from multiple sectors.

Which KSE-100 sectors drove profit growth in 9MFY26?

Banks, cement, investment banks, leather, textile composites, oil and gas marketing companies, pharmaceuticals, auto assemblers and food sectors all posted year-on-year profit growth ranging from 3% to 167%.

Refineries led the pack with a 355% surge, while textile composites and OGMCs also recorded sharp gains. E&P companies and fertilizers were the primary drag on overall index earnings.

How did the banking sector perform in 9MFY26?

Commercial banks, which carry the heaviest weight in the KSE-100, posted a 3% rise in profits to PKR 483 billion. The increase was attributed to a shift toward current deposits, which helped reduce interest expenses by 19%.

Despite the modest growth rate, banks remained the single largest contributor to index earnings.

The cement sector recorded a 7% profit increase to PKR 65 billion, supported by lower coal prices and higher dispatches. OGMCs posted a sharper 58% rise to PKR 63.1 billion, driven by inventory gains and improved pricing. Auto assemblers saw profits jump 25% to PKR 48 billion, aided by higher sales volumes, new model launches and a recovery in auto financing.

Which sectors posted the strongest earnings growth?

Refineries were the standout performer across the entire KSE-100, with net profits surging 355% year-on-year to PKR 34 billion. The increase was driven by higher volumes and a sharp expansion in high-speed diesel crack spreads.

Textile composites followed with 146% profit growth to PKR 12 billion, helped by lower raw material and financing costs.

The technology sector also turned around, posting a profit of PKR 1.4 billion compared to a loss of PKR 2.5 billion in the same period last year. The recovery was driven by Pakistan Telecommunication Company, supported by higher telecom service pricing and lower credit loss allowances. The power sector posted a modest 5% increase to PKR 36 billion, supported by higher associate income and lower finance costs.

Which KSE-100 sectors saw profit declines in 9MFY26?

Exploration and production companies reported a 9% decline in earnings to PKR 226 billion. Lower international oil prices, reduced output and higher operating and royalty expenses, particularly at MARI, drove the fall. Weak power demand further pressured production levels across the sector.

Fertilizer profits fell 3% to PKR 109 billion, weighed down by a sales tax impairment at FFC, weaker offtake at EFERT and mark-to-market losses at FATIMA during the third quarter.

The chemicals sector recorded a steeper 17% decline. Dividend income from power investments and Askari Bank partially offset losses in fertilizers.

Overall, Arif Habib Limited said the earnings trajectory reflects easing cost pressures and selective demand recovery, though challenges persist in energy-linked and commodity-driven sectors.