Engro Holdings Limited (ENGROH) April–June 2025: Big Earnings Boost

Engro Holdings Limited (ENGROH) is expected to show a huge jump in profits for April–June 2025. The company’s earnings are likely to be almost four times higher than last year, mainly because of its strong energy business and better results in fertilizers and telecom.

Key highlights

• Profit After Tax (PAT): PKR 8.7 billion
• Earnings per Share (EPS): PKR 7.25
• This is up 3.9x compared to the same period last year (EPS: 1.86).
• No cash dividend is expected this time, as the company needs funds for the acquisition of Deodar.

Energy business back in action

One of the biggest boosts comes from Engro’s energy segment, which is now part of continuous operations after a deal to sell it was cancelled earlier this year. Engro Energy is expected to contribute about PKR 5.4 billion in earnings this quarter.

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Fertilizer performance

Engro Fertilizers (EFERT) had a strong quarter too. Profits jumped 3.3x YoY to PKR 5.6 billion, thanks to higher sales:

• Urea: +40% YoY
• DAP: +31% YoY
  Gross margins improved to 31.4%, showing stronger profitability.

Telecom & Deodar Towers

Engro Connect, the company’s telecom arm, is also expected to perform better, supported by the 10,600 towers it acquired from Deodar. This addition is likely to lift profits despite higher borrowing costs.

Other businesses

• Engro Polymer (EPCL): Posted a loss of PKR 2.4 billion due to high gas tariffs and weaker PVC margins.
• Elengy Terminal: Earnings steady at PKR 1.1 billion.
• FrieslandCampina Engro (FCEPL): Contribution fell to PKR 93 million from 235 million last year because of higher taxes.

Outlook

Engro Holdings looks set for stronger earnings growth ahead:

• The energy portfolio is back on the books.
• Fertilizers and telecom are performing well.
• Lower interest rates could ease borrowing costs in the future.

Analysts maintain a “Buy” rating on the stock with a target price of PKR 301 per share by December 2025.

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Source: AKD Securities

⚠️ 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 →