External broker reports(aggregated public sources), Topline Securities

Topline Securities

External broker reports(aggregated public sources)

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Equity Bottom-Up

<ul><li>Engro Fertilizers (EFERT) announced its 1Q2026 financial result today, wherein the company recorded consolidated quarterly profit of Rs3.3bn (EPS: Rs2.48), up by 14% YoY and down 60% QoQ.</li><li>Net sales of the company increased by 25% YoY to Rs37.8bn in 1Q2026.</li><li>Gross margins stood at 31.0% in 1Q2026, below our expectation of 32.8%.</li></ul>

Engro Fertilizers (EFERT) announced its 1Q2026 financial result today, wherein the company recorded consolidated quarterly profit of Rs3.3bn (EPS: Rs2.48), up by 14% YoY and down 60% QoQ.Net sales of the company increased by 25% YoY to Rs37.8bn in 1Q2026.Gross margins stood at 31.0% in 1Q2026, below our expectation of 32.8%.

Engro Fertilizers (EFERT): 1Q2026 EPS at Rs2.48, Up 14% YoY (Earnings Lower Than Industry Expectations)

<ul><li>Engro Fertilizers (EFERT) held its 4Q2025 Corporate Briefing Session today, wherein, the management discussed financial performance and outlook.</li><li>The company reported consolidated profits of Rs8.4bn (EPS: Rs6.26), down by 19% YoY and up 44% QoQ. The decline in profitability was due to the one-time recognition of super tax charge amounting to ~Rs2bn coupled with the higher finance cost of Rs2bn in 4Q2025.</li><li>Similarly, the net sales of the company surged by 20% YoY and 86% QoQ to Rs101.6bn in 4Q2025. The increase in revenue is due to the all-time high Urea volumes clocked in at 1.03mn tons with a market share of 41% in 4Q2025.</li></ul>

Engro Fertilizers (EFERT) held its 4Q2025 Corporate Briefing Session today, wherein, the management discussed financial performance and outlook.The company reported consolidated profits of Rs8.4bn (EPS: Rs6.26), down by 19% YoY and up 44% QoQ. The decline in profitability was due to the one-time recognition of super tax charge amounting to ~Rs2bn coupled with the higher finance cost of Rs2bn in 4Q2025.Similarly, the net sales of the company surged by 20% YoY and 86% QoQ to Rs101.6bn in 4Q2025. The increase in revenue is due to the all-time high Urea volumes clocked in at 1.03mn tons with a market share of 41% in 4Q2025.

Topline Flash Note: Engro Fertilizers (EFERT) – Corporate Briefing Key Takeaways

Thematic (Sector/Industry)

<ul>
<li>Pakistan's urea sales in Aug 2026 are expected to decline 14% YoY but up 21% MoM, with volumes of 702k tons.</li>
<li>We believe the YoY decline is due to heavy monsoon rains, which delayed Kharif application, compared to the Aug 2025 base, which was relatively strong.</li>
<li>Industry urea inventory is likely to clock in at 0.75mn tons in Aug-2026 vs 0.93mn in Jul-2026.</li>
</ul>


Pakistan's urea sales in Aug 2026 are expected to decline 14% YoY but up 21% MoM, with volumes of 702k tons.
We believe the YoY decline is due to heavy monsoon rains, which delayed Kharif application, compared to the Aug 2025 base, which was relatively strong.
Industry urea inventory is likely to clock in at 0.75mn tons in Aug-2026 vs 0.93mn in Jul-2026.


Pakistan Fertilizers: Urea Sales for Aug 2026 Expected at 702k Tons, Down 14% YoY

<ul><li>Engro Fertilizers (EFERT) announced its 4Q2025 financial result today, wherein the company recorded consolidated quarterly profit of Rs8.4bn (EPS: Rs6.26), down 19% YoY and up 44% QoQ. The result came lower than the industry’s expectations due to lower-than-expected gross margins along with the one-time recognition of super tax charge amounting to ~Rs2bn in 4Q2025.</li><li>This takes 2025 earnings to Rs22.6bn (EPS: Rs16.95), down 20% YoY.</li><li>Net sales of the company increased by 20% YoY and 86% QoQ at Rs102bn in 4Q2025 due to the surge in Urea and DAP offtakes.</li></ul>

Engro Fertilizers (EFERT) announced its 4Q2025 financial result today, wherein the company recorded consolidated quarterly profit of Rs8.4bn (EPS: Rs6.26), down 19% YoY and up 44% QoQ. The result came lower than the industry’s expectations due to lower-than-expected gross margins along with the one-time recognition of super tax charge amounting to ~Rs2bn in 4Q2025.This takes 2025 earnings to Rs22.6bn (EPS: Rs16.95), down 20% YoY.Net sales of the company increased by 20% YoY and 86% QoQ at Rs102bn in 4Q2025 due to the surge in Urea and DAP offtakes.

Engro Fertilizers (EFERT): 4Q2025 EPS at Rs6.26, Down 19% YoY (Earnings Lower Than Industry Expectations)

<ul><li>Pakistan's urea sales in Jul-2026 are expected to decline 4% YoY and 2% MoM, with volumes of 581k tons.</li><li>We believe the decline is due to ongoing monsoon rain disruptions, which slowed down application of fertilizer across major crop belts.</li><li>Industry urea inventory is likely to clock in at 0.93mn tons in Jul-2026 vs 0.84mn in Jun-2026.</li></ul>

Pakistan's urea sales in Jul-2026 are expected to decline 4% YoY and 2% MoM, with volumes of 581k tons.We believe the decline is due to ongoing monsoon rain disruptions, which slowed down application of fertilizer across major crop belts.Industry urea inventory is likely to clock in at 0.93mn tons in Jul-2026 vs 0.84mn in Jun-2026.

Pakistan Fertilizers: Urea Sales for July 2026 Expected at 581k Tons, Down 4% YoY; Inventory at 0.93mn Tons

Pakistan

Engro Fertilizers Limited is a fertilizer manufacturing and marketing company with products that focus on balanced crop nutrition and increased yield.

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Engro Fertilizer (EFERT PA)

Engro Fertilizers (EFERT): 1Q2026 EPS at Rs2.48, Up 14% YoY (Earnings Lower Than Industry Expectations)

Engro Fertilizers (EFERT) announced its 1Q2026 financial result today, wherein the company recorded consolidated quarterly profit of Rs3.3bn (EPS:...

Topline Securities

Topline Flash Note: Engro Fertilizers (EFERT) – Corporate Briefing Key Takeaways

Engro Fertilizers (EFERT) held its 4Q2025 Corporate Briefing Session today, wherein, the management discussed financial performance and...

Topline Securities

Pakistan Fertilizers: Urea Sales for Aug 2026 Expected at 702k Tons, Down 14% YoY

Pakistan's urea sales in Aug 2026 are expected to decline 14% YoY but up 21% MoM, with volumes of 702k tons. We believe the YoY decline is due to...

Topline Securities

Engro Fertilizers (EFERT): 4Q2025 EPS at Rs6.26, Down 19% YoY (Earnings Lower Than Industry Expectations)

Engro Fertilizers (EFERT) announced its 4Q2025 financial result today, wherein the company recorded consolidated quarterly profit of Rs8.4bn (EPS:...

Topline Securities

Pakistan Fertilizers: Urea Sales for July 2026 Expected at 581k Tons, Down 4% YoY; Inventory at 0.93mn Tons

Pakistan's urea sales in Jul-2026 are expected to decline 4% YoY and 2% MoM, with volumes of 581k tons. We believe the decline is due to ongoing...

Topline Securities

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