3 Best Stocks For 2026
2. Engro Holdings Limited (ENGROH)
Engro Holdings Limited continued strengthening its diversified business model through growth in telecommunications infrastructure, recovery across subsidiaries, and disciplined financial management.
1Q2026 Earnings Rebounded Strongly
Engro Holdings reported consolidated profit after tax of PKR 10.2 billion during the first quarter of 2026. Consolidated earnings per share for the quarter stood at PKR 8.50. Net sales during the period reached approximately PKR 131.97 billion. Management attributed the earnings improvement primarily to the reversal of prior thermal asset adjustments of nearly PKR 3 billion, the addition of the Deodar tower portfolio, and recovery in the petrochemical segment.
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Connectivity Business Continued Expanding Rapidly
The latest corporate briefing highlighted aggressive expansion within the group’s telecommunications infrastructure business under Engro Connect. The company increased its total tower count to 15,331 towers by the end of the first quarter of 2026. Management expects the tower business to contribute an incremental PKR 36 billion in revenue during 2026. The group also plans to add approximately 400 to 450 new towers during 2026 to improve network coverage and prepare for the upcoming 5G rollout. To improve operational efficiency, management continues prioritizing tower solarization and tenancy optimization initiatives. Tenancy ratios are projected to improve to nearly 1.8x to 1.9x by 2028. Subsidiary Recoveries Supported Overall Earnings. Several major subsidiaries also contributed positively during the first quarter of 2026. Engro Polymer & Chemicals Limited returned to profitability after four consecutive quarters of losses, posting a profit of PKR 371 million. FrieslandCampina Engro Pakistan Limited reported first-quarter earnings of PKR 1.85 billion, supported by volume growth and a favourable product mix. Engro Fertilizers Limited contributed PKR 3.3 billion to group earnings during the quarter through higher urea sales volumes of 279,000 tons.
Financial Management Remained A Key Focus
Management disclosed that approximately 40% of long-term loans have been hedged at favourable rates to reduce exposure to interest rate fluctuations. The group also plans to continue reinvesting operating cash flows into the business while maintaining its existing capital expenditure program. Management emphasized that the company maintains sufficient liquidity to manage remaining tax liabilities without material operational pressure.
⚠️ This post reflects the author’s personal opinion and is for informational purposes only. It does not constitute financial advice. Investing involves risk and should be done independently. Read full disclaimer →
Comment (1)
It’s refreshing to see the shift toward companies like HUBC that are expanding beyond traditional models to build future growth engines through diversification. I especially agree with your point about how operational efficiency and disciplined capital allocation are becoming the true differentiators for investors in 2026.