Karachi: Engro Holdings has announced its financial results for the fourth quarter of 2025, revealing a decline in earnings per share (EPS) compared to the same period last year but an improvement from the previous quarter. The company reported an EPS of Rs11.31, marking a 17% year-on-year decrease yet a significant 111% increase from the third quarter of 2025.
According to JS Global, Engro Holdings' profit attributable to equity owners reached Rs13.6 billion in the fourth quarter, surpassing expectations due to a lower effective tax rate. The company's overall performance for 2025 resulted in a profit after tax (PAT) of Rs55.6 billion, with an EPS of Rs46.20, although this includes a one-time reversal of impairment on thermal assets. Excluding this factor, the PAT stands at Rs29 billion, with an EPS of Rs24.13.
Among Engro's subsidiaries, Engro Fertilizers Limited experienced a 19% decrease in earnings year-on-year, reporting a profit of Rs8.4 billion in the fourth quarter, primarily due to reduced gross margins and a super tax adjustment. Meanwhile, Engro Polymer reported a consolidated loss of Rs446 million, a significant decline from a profit of Rs2.1 billion in the same period last year, as gross margins shrank to 5.5%.
The company recorded a Rs1.3 billion reversal in administrative expenses for the fourth quarter, potentially linked to the reclassification of costs, while other expenses rose by 103% year-on-year. The effective tax rate for the quarter stood at 18%, a decrease from 27% in the fourth quarter of 2024 and 47% in the third quarter of 2025, attributed to tax reversals in the tower business.
Engro Holdings did not declare a cash dividend alongside the results, opting to allocate resources toward financing a tower business acquisition. JS Global maintains a Buy stance on Engro Holdings, with the stock trading at a projected price-to-earnings ratio of 7.5x for 2026 and 6.0x for 2027.
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