Engro Fertilizers Limited (PSX: EFERT) has reported a 20 percent year-on-year (YoY) decline in profit-after-tax (PAT) for 2025, even as sales volumes remained strong.

According to the company’s financial results, PAT stood at Rs. 22.6 billion (EPS: Rs. 16.95) for the full year 2025, reflecting a notable drop compared to the previous year.

4Q2025 Performance

For the fourth quarter of 2025, EFERT posted:

• PAT: Rs. 8.4 billion
• EPS: Rs. 6.26
• 19% YoY decline
• 44% quarter-on-quarter (QoQ) growth

While quarterly earnings showed strong sequential improvement, they remained lower on an annual comparison basis.

Reasons Behind the Decline

According to Topline Securities, the results fell short of industry expectations due to:

• Lower-than-expected gross margins
• A one-time super tax charge of Rs. 2 billion recognized in 4Q2025

The super tax impact significantly weighed on profitability during the final quarter, contributing to the overall annual decline.

Market Outlook

Despite the dip in earnings, Engro Fertilizers remains a key player in Pakistan’s fertilizer sector. Analysts note that margin recovery, cost management, and pricing dynamics will be critical factors influencing performance in 2026.

The company’s quarterly rebound suggests operational resilience, but sustained profitability will depend on input costs, government policies, and demand conditions in the agriculture sector.