KSE-100 profits climb to PKR 1.29T amid broad-based sector gains

Companies listed on Pakistan’s benchmark KSE-100 index posted a 13.6% year-over-year increase in profitability during the first nine months of 2025, earning a combined PKR 1.29 trillion, according to a market review covering 97% of the index’s capitalization.

The gain was primarily fueled by sharp earnings growth in investment banking (up 510%), pharmaceuticals (97%), cement (41%), auto assemblers (35%), insurance (32%), and oil marketing companies (30%).

Profitability, however, fell in the power, property, real estate investment trust (REIT), exploration and production (E&P), and miscellaneous sectors, which declined by 47%, 43%, 37%, 8%, and 25% respectively.

Sector highlights

Commercial banks

The banking sector’s profit rose 15% year-over-year to PKR 491 billion during 9MCY25, supported by higher net interest margins, non-funded income including capital gains, and provisioning reversals.

Cement

Cement manufacturers saw earnings climb 41% to PKR 117 billion, aided by lower coal prices, improved margins, increased other income, and reduced finance costs due to falling interest rates. Higher exports and a better energy mix also contributed.

Oil and gas exploration companies

The sector’s profitability dropped 8% to PKR 257 billion, as lower global oil prices, reduced production, and a stronger rupee weighed on results.

The absence of depletion allowance provisions further constrained earnings.

Power

Power sector profits fell 47% to PKR 37.4 billion, largely due to the termination of Hubco’s base plant power purchase agreement (PPA) and payment adjustments by CPPA-G to several independent power producers.

Fertilizers

Fertilizer companies earned PKR 101 billion, up 10% year-over-year, mainly due to higher urea offtake supported by stronger farm economics and increased dividend income.

Oil marketing companies

Earnings jumped 30% to PKR 33 billion, driven by inventory gains and lower finance costs.

Auto assemblers

The auto sector’s bottom line surged 35% to PKR 56 billion, helped by recovering sales volumes, easing inflation, improved auto financing, and new model launches, though tractor sales declined amid weak farm conditions and flood impacts.

Technology and telecom

The sector turned profitable with earnings of PKR 8.6 billion, compared to a PKR 22.1 billion loss last year.

Pakistan Telecommunication Company Limited (PTC) narrowed losses, while Systems Limited (SYS) reported a 46% increase in profits on higher IT exports.

Pharmaceuticals

Drugmakers posted a 97% jump in profits to PKR 22 billion, supported by higher demand following floods, improved margins, and new product launches.

Chemicals

Profitability in the chemical sector rose modestly by 2% to PKR 7.2 billion, reflecting a slight recovery in construction despite high gas costs and weaker international margins.

Textiles

Textile composites reported a 17% increase in earnings to PKR 12 billion, attributed to lower raw material costs and reduced financing expenses.

For the third quarter alone (3QCY25), KSE-100 earnings rose 8.7% year-over-year to PKR 438 billion. Investment banks, textiles, insurance, OGMCs, and auto assemblers led the growth, while power, property, fertilizers, and E&Ps reported declines.

Dividend payouts

Total dividends from KSE-100 companies climbed 9% year-over-year to PKR 552 billion in 9MCY25, with an overall payout ratio of 43%.

• Banks distributed PKR 218 billion in dividends, up 13.5%.
• E&P companies paid PKR 105 billion, up 14.5%, led by OGDC and MARI.
• Fertilizers increased payouts by 43.8% to PKR 63 billion, primarily from FFC and Fatima Fertilizer.
• Cement sector dividends rose 23.4% to PKR 28 billion.
• Auto assemblers posted the sharpest increase, up 53.7% to PKR 29 billion.
• Power companies’ dividends declined 5.2% to PKR 22 billion amid lower profitability.

The analysis covered results from 90 companies representing 97% of the KSE-100’s market capitalization.

Despite sectoral divergences, analysts said the overall trend reflects improving profitability across cyclical industries, aided by easing interest rates, stable exchange rates, and lower input costs.