In Pakistan’s fertiliser sector, net profits soared by Rs141.1 billion in 2025, marking a 10% increase from the previous year. This robust performance is largely attributed to higher urea sales, improved other income, and reduced operational expenses.
The industry’s fourth-quarter earnings amounted to Rs38.1 billion, down marginally by 2% YoY but up sharply by 3% QoQ. The report, prepared by Topline Research on Friday, highlighted a net sales volume of Rs981.6 billion for the year under review, a rise of 7% from the previous fiscal year. In October through December alone, revenue surged by 8% YoY to Rs361 billion.
Urea purchases climbed slightly to 6.7 million tons in the year under review, while demand for di-ammonium phosphate (DAP) decreased significantly by 18% to 1.34 million tons. Remarkably, urea supplies surged by 26% YoY and 36% QoQ to a total of 2.5 million tons in the Oct-Dec quarter.
Despite the slight dip in gross margins to 31%, driven primarily by company discounts, fertiliser firms managed to maintain profitability amidst competitive market conditions. In the fourth quarter specifically, margins declined slightly to 27%. Engro Fertilisers and Fauji Fertilizer Company (FFC) both reduced their product prices during this period.
Other income for listed companies grew significantly in 2025 by 20%, reaching Rs24.8 billion. This notable increase was mainly due to FFC’s substantial dividend income from energy businesses, amounting to Rs9 billion, and another Rs7 billion from Pakistan Maroc Phosphore (PMP). Quarterly other income dipped sharply, dropping by 32% YoY and 23% QoQ to Rs10.7 billion in the fourth quarter.
Other charges decreased drastically in 2025, amounting to Rs21.7 billion—a reduction of 32%. In the fourth quarter, despite a slight rise from the previous year by 18%, other charges still fell significantly to Rs6.6 billion. The substantial decline was mainly attributed to FFC’s absence of impairment costs and subsidy receivables booked in investment.
Overall, these figures indicate continued growth and resilience within Pakistan’s fertiliser sector, though challenges persist with fluctuating market conditions affecting both revenues and margins.