Listed fertiliser firms' profit soars to Rs141b

Earnings driven mainly by higher urea purchases, lower charges

KARACHI:

Pakistan's listed fertiliser sector posted a net profit of Rs141.1 billion in calendar year 2025, up 10% compared to the previous year, driven primarily by higher urea offtake, improved other income and lower other charges.

In the fourth quarter alone, earnings of the industry reached Rs38.1 billion, down 2% year-on-year (YoY) and up 3% quarter-on-quarter (QoQ).

According to a report prepared by Topline Research on Friday, net sales of the fertiliser sector came in at Rs981.6 billion in 2025, which was 7% higher amid enhanced urea and di-ammonium phosphate (DAP) offtake. In Q4, the revenue rose 8% YoY and 41% QoQ to Rs361 billion.

During the year under review, urea purchases edged up 2% to 6.7 million tons, whereas DAP buying decreased by a substantial 18% to 1.34 million tons. However, in the Oct-Dec quarter, urea supplies soared 26% YoY and 36% QoQ to a total of 2.5 million tons.

The industry's gross margins slightly dropped to 31% in 2025 mainly due to the discounts offered by companies. Similarly, margins fell to 27% in 4Q2025 as compared to 29% in 4Q2024 and 32% in 3Q2025. Among fertiliser firms, Engro Fertilisers offered a discount of Rs300 to Rs400 per bag while Fauji Fertiliser Company (FFC) offered between Rs100 and Rs200 per bag in 4Q2025.

Other income of the listed companies surged 20% to Rs24.8 billion in 2025. The YoY increase in other income was primarily due to FFC's higher dividend income of Rs9 billion from energy businesses and Rs7 billion from Pakistan Maroc Phosphore (PMP). On a quarterly basis, however, other income slipped 32% YoY and 23% QoQ to Rs10.7 billion in 4Q2025.

Other charges decreased 32% to Rs21.7 billion in 2025. Similarly, the charges went down 40% YoY but rose 18% QoQ to Rs6.6 billion in the fourth quarter. The reduction in charges came mainly owing to the absence of FFC's impairment cost booked on investment and subsidy receivables.