Engro Holdings Ltd. (PSX: ENGROH) is set to announce consolidated recurring earnings of Rs8.7 billion (earnings per share: Rs7.25) for the second quarter of calendar year 2025, reflecting a sharp 3.9x increase from Rs2.2 billion (EPS: Rs1.86) recorded in the same period last year. The results highlight a robust rebound across the group’s core segments, alongside expansion initiatives that are reshaping its future growth trajectory.
According to AKD Securities, the significant earnings surge is driven primarily by the company’s energy portfolio and stronger performances from its fertilizer and telecom businesses. The brokerage has reiterated its BUY rating on ENGROH stock, setting a December 2025 target price of Rs301 per share. Analysts suggest that declining interest rates and anticipated reforms in the energy sector are expected to further bolster the group’s profitability in the coming quarters.
A key factor in the quarterly performance is the continued momentum in Engro Energy Ltd., projected to contribute Rs5.4 billion (Rs4.5/share) to the group’s bottom line. This comes after the unit’s reclassification into continuous operations, following the cancellation of a share purchase agreement earlier in April 2025.
Engro Fertilizers (PSX: EFERT) also delivered a stellar performance, reporting a 3.3x year-on-year jump in quarterly earnings to Rs5.6 billion. The growth was supported by strong demand, with urea and DAP sales rising 40% and 31% respectively. This uplift drove gross margins higher by 11 percentage points year-on-year to 31.4%, underlining the resilience of the fertilizer segment in navigating cost pressures.
In the telecom vertical, Engro Connect is forecasted to post earnings of Rs899 million in 2QCY25. The segment has been buoyed by the addition of Deodar’s 10,600 towers, strengthening its infrastructure footprint. However, this growth comes alongside rising finance costs, which increased 79% year-on-year to Rs3.4 billion, reflecting the capital-intensive nature of the expansion.
On the downside, Engro Polymer & Chemicals Ltd. (PSX: EPCL) faced significant headwinds, with its losses widening to Rs2.4 billion in the quarter. The decline was driven by elevated gas tariffs and weak margins in the polyvinyl chloride (PVC) market, with gross margins dipping to just 0.2%.
Meanwhile, Elengy’s contribution is expected to remain steady at Rs1.1 billion, showcasing stability in the LNG terminal business. Friesland Campina Engro Pakistan Ltd. (PSX: FCEPL), however, saw its earnings contract to Rs93 million compared to Rs235 million in the same period last year, largely due to higher taxation pressures.
Despite the strong earnings momentum, the company is not expected to announce any payout with the result. Analysts point to increased cash requirements linked to the acquisition of Deodar as the primary reason for retaining earnings at this stage.
Market experts believe the latest earnings reinforce Engro Holdings’ diversified growth model, balancing cyclical pressures in certain sectors with robust expansions in others. With its fertilizer and energy divisions leading the charge and telecom positioned as a new growth driver, the company is seen as strategically aligned to capture opportunities in Pakistan’s evolving industrial and financial landscape.