Engro Fertilizers (EFERT): rebound in sales drives earnings surge

Engro Fertilizers (EFERT) is expected to post a massive Rs6.1 billion profit for Q2 2025, that’s 2.6 times higher than the Rs1.7 billion earned in the same period last year.

What changed?

• Last year’s quarter was hit by a planned plant shutdown, which impacted production.
• This year, urea sales rose 40% YoY to 431,000 tons.
• DAP sales jumped 33% YoY to 56,000 tons.
• The result? Revenue climbed to Rs52.6 billion, a 34% YoY and 74% QoQ increase!

Margins improved to 34%, up from 18% last year, even though the company offered discounts to regain lost market share.

Dividend expectations are strong with a likely payout of Rs4.5/share, taking the 1H total to Rs6.75/share.

Other factors:

• Other income fell by 55% YoY to Rs178 million due to lower income from short-term investments.
• Finance costs rose 22% YoY due to higher working capital needs and a rise in long-term debt.

Bottom line:

EFERT has bounced back strong from a weak 2024. With rising volumes, healthier margins, and a resilient market share, the company looks to be in great shape for the second half of 2025.

Its performance shows the power of a quick operational recovery and the value of keeping prices competitive in a tough market.

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⚠️ 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 →

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