Karachi: Engro Holdings Limited reported substantial revenue growth for Engro Connect in 2025, with figures rising to Rs50 billion from Rs17 billion in 2024, largely attributed to the expansion following the Deodar merger. According to JS Global, Engro Connect's contribution to the company's bottom line was estimated at approximately Rs8-9 billion, excluding accounting adjustments.
The company noted that the tenancy ratio for Enfrashare and Deodar is between 1.25 and 1.3, resulting in a blended average of 1.27. Engro is collaborating with mobile network operators to achieve a long-term tenancy ratio of 1.8-1.9. The estimated tower rollout target for the current year ranges from 400 to 500 towers, with optimism fueled by the upcoming 5G auction and the Telenor-Ufone merger.
EFERT's sales declined by 8% year-on-year to Rs237 billion in 2025, influenced by higher urea discounts and reduced phosphate volumes, despite a 14.2% increase in urea volumes to 2,313K tons. Profitability fell by 20% to Rs23 billion, impacted by a one-time provision for super tax. The company formalized its gas allocation, receiving 40% under the Petroleum Policy and 60% under the Fertilizer Policy.
EPCL faced challenges due to a decline in China demand and rising energy costs, reporting a loss of Rs3.9 billion in 2025, compared to Rs0.2 billion in 2024. Despite increased revenue from higher volumetric sales and the commencement of HPO, the company is awaiting final approval for its power solution plan.
Engro Vopak maintained flat chemical handling volumes and processed 71 LNG cargoes with a 97% availability rate. However, profitability was affected by an increase in the minimum tax rate under the Finance Act 2025. EPQL's profitability decreased by 61% year-on-year due to lower dispatch and capacity payment reductions. The equity stake in EPQL was reduced from 68.69% to 50.36% to optimize cash use.
Engro Eximp FZE saw a 1% USD revenue growth to US$612 million, focusing on third-party trades, and improved its 3P ratio to 55% in 2025. FCEPL's topline decreased by 2% to Rs104 billion, with a 22% profit increase due to a better mix and cost optimization.
Management reported a total super tax cash outflow of Rs14 billion, with net cash outflow expected to reduce to Rs8-9 billion with refunds and adjustments. Engro Holdings is trading at a 2026E and 2027F P/E of 7.2x and 5.8x, respectively.
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