Engro Holdings Limited (PSX: ENGROH), formerly Dawood Hercules Corporation Limited, has posted a remarkable turnaround in its financial results for the half year ended June 30, 2025. The conglomerate reported a consolidated Profit-After-Tax (PAT) of Rs. 73.3 billion, a substantial leap from Rs. 13.82 billion recorded during the same period last year. Earnings per share (EPS) stood at Rs. 29.54, compared with Rs. 8.09 in 2024.
The sharp profit surge is primarily attributed to the reversal of impairments linked to thermal energy assets, which had previously been classified as “held for sale” in 2023 and 2024. This one-time adjustment significantly lifted the bottom line. Excluding this extraordinary factor, consolidated PAT came in at Rs. 19.6 billion, with Rs. 9 billion attributable to shareholders.
On a standalone basis, however, the results were considerably weaker. Engro Holdings reported PAT of just Rs. 67 million compared to Rs. 4.2 billion a year earlier, translating into an EPS of Rs. 0.06, down from Rs. 8.68. This decline largely reflects the transfer of income-generating investments to DH Partners under the Scheme of Arrangement effective January 1, 2025. In addition, dividends from Engro Corporation were lower as the company chose to retain earnings to support its acquisition of Deodar Towers.
The restructuring into Engro Holdings earlier this year marked a major corporate milestone. Effective January 1, 2025, Engro Corporation became a wholly owned subsidiary of the new holding structure. This transition boosted the profit attributable to owners from 39.97 percent last year to 100 percent. The change also increased the number of outstanding shares to 1.204 billion, impacting the comparability of EPS with prior years.
A key factor behind the impressive earnings was the reclassification of Engro’s thermal energy assets. Following the termination of divestment agreements in April 2025, the assets were shifted back to continuing operations. This triggered a significant impairment reversal of Rs. 53.8 billion, with Rs. 26.6 billion attributable to shareholders. The reversal provided a one-off boost, strengthening the company’s consolidated profitability.
Engro’s strategic expansion into telecom infrastructure also shaped its half-year results. On June 3, 2025, the company consolidated approximately 10,600 towers of Deodar into its accounts after completing the PMCL transaction. The provisional recognition of Deodar’s assets and liabilities stood at Rs. 220.6 billion and Rs. 167.7 billion respectively, underlining the scale of this acquisition. The transaction positions Engro as a key player in Pakistan’s digital infrastructure ecosystem, with expectations of stable cash flows and long-term shareholder value.
Despite the strong earnings, Engro Holdings’ board decided against declaring an interim dividend for 2025. The decision reflects the company’s focus on conserving capital to fund the Deodar towers acquisition, which management described as a transformative investment. According to the company, prioritizing long-term strategic expansion over immediate payouts is expected to strengthen financial resilience and drive sustainable growth.
The results underscore how Engro Holdings is redefining its portfolio by balancing legacy energy assets with forward-looking investments in telecom and infrastructure. While impairment reversals provided a temporary earnings lift, the company’s future trajectory hinges on the successful integration of Deodar Towers and continued strategic capital allocation. With its expanded ownership structure and diversification strategy, Engro Holdings is positioning itself as a dynamic force in Pakistan’s evolving business landscape.