Pakistan’s listed fertilizer sector posted a profit of PKR 141.1 billion in 2025, reflecting a 10% year-on-year increase, driven mainly by higher urea offtake, increased other income and lower other charges.
In the fourth quarter of 2025, sector profits reached PKR 38.1 billion, down 2% year-on-year but up 3% quarter-on-quarter.
Sector net sales stood at PKR 981.6 billion in 2025, up 7% year-on-year, supported by stronger urea and DAP offtake. In 4Q2025, revenue rose 8% year-on-year and 41% quarter-on-quarter to PKR 361.0 billion.
According to Muhammad Abdur Rafay of Topline Research, urea offtake increased 2% year-on-year to 6.7 million tons in 2025, while DAP offtake declined 18% year-on-year to 1.34 million tons. In 4Q2025, urea offtake surged 26% year-on-year and 36% quarter-on-quarter to 2.5 million tons.
Margins and costs
Gross margins for the sector declined slightly to 31% in 2025, largely due to discounts offered by companies.
Margins fell further to 27% in 4Q2025, compared with 29% in 4Q2024 and 32% in 3Q2024. During the quarter, Engro Fertilizers (EFERT) offered discounts of PKR 300-400 per bag, while Fauji Fertilizer Company (FFC) offered PKR 100-200 per bag.
Other income rose 20% year-on-year to PKR 24.8 billion in 2025, mainly supported by FFC’s dividend income of PKR 9 billion from energy businesses and PKR 7 billion from PMP.
On a quarterly basis, however, other income declined 32% year-on-year and 23% quarter-on-quarter to PKR 10.7 billion in 4Q2025.
Other charges fell 32% year-on-year to PKR 21.7 billion in 2025. In 4Q2025, charges dropped 40% year-on-year but increased 18% quarter-on-quarter to PKR 6.6 billion, mainly due to the absence of impairment booked by FFC on investments and subsidy receivables in 4Q2024.
Finance costs increased 9% year-on-year to PKR 24.8 billion in 2025. On a quarterly basis, finance costs declined 8% year-on-year but rose 16% quarter-on-quarter to PKR 6.8 billion in 4Q2025.
Fertilizer companies distributed PKR 111.8 billion in dividends in 2025, marking a 72% year-on-year increase in shareholder payouts.
For analysis purposes, FFC is considered on an unconsolidated basis, while EFERT and Fatima Fertilizer are considered on a consolidated basis to reflect fertilizer operations.
Company performance
Fauji Fertilizer Company (FFC)
FFC’s sales increased 16% year-on-year to PKR 432.4 billion in 2025. In 4Q2025, sales remained flat year-on-year but rose 18% quarter-on-quarter to PKR 149.7 billion.
Gross margins narrowed to 30% in 2025 after the company booked a PKR 14.13 billion provision against sales tax receivables. In 4Q2025, margins stood at 25%, compared with 31% in 3Q2025 and 26% in 4Q2024.
FFC reported a profit of PKR 73.5 billion (EPS: PKR 51.12) in 2025, up 14% year-on-year, supported by higher dividend income from energy businesses, which lifted other income 13% year-on-year.
In 4Q2025, profit reached PKR 15.9 billion (EPS: PKR 11.07), up 12% year-on-year but down 17% quarter-on-quarter due to the one-off sales tax provision.
Engro Fertilizers (EFERT)
EFERT’s sales declined 8% year-on-year to PKR 237.1 billion in 2025.
However, 4Q2025 sales increased 20% year-on-year and 86% quarter-on-quarter to PKR101.7 billion.
Gross margins improved to 31% in 2025, compared with 28% in 2024.
In 4Q2025, margins slipped to 28%, compared with 31% in 4Q2024 and 33% in 3Q2025, mainly due to higher discounts of PKR 300-400 per bag.
EFERT’s profit declined 20% year-on-year to PKR 22.6 billion (EPS: PKR 16.95) in 2025, mainly due to margin pressure and a 49% rise in finance costs, driven by a 68% increase in total debt.
In 4Q2025, earnings totaled PKR 8.4 billion (EPS: PKR 6.26), down 19% year-on-year but up 44% quarter-on-quarter.
Fatima Fertilizer
Fatima Fertilizer recorded 7% year-on-year sales growth to PKR 276.1 billion in 2025.
In 4Q2025, sales rose 13% year-on-year and 55% quarter-on-quarter to PKR 97.3 billion, supported by higher urea offtake of 185,000 tons.
Gross margins stood at 34% in 2025, compared with 36% in 2024.
In 4Q2025, margins were 31%, compared with 35% in 3Q2025 and 32% in 4Q2024.
The company reported a 15% year-on-year increase in profit to PKR 42.1 billion (EPS: PKR 20.03) in 2025, mainly due to a 49% decline in other charges following the absence of impairment losses.
In 4Q2025, profit totaled PKR 13.1 billion (EPS: PKR 6.26), down 4% quarter-on-quarter but up 10% year-on-year.
The fertilizer industry is expected to remain stable, supported by strong urea demand and seasonal agricultural activity.
Margins may ease as dealer discounts are rolled back and urea inventory levels normalize.
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