Pakistan’s listed fertilizer companies delivered a resilient performance in 2025, with aggregate after-tax profits rising 10% YoY to Rs141.1 billion, up from Rs129.0 billion in 2024, according to a sector update by Topline Securities.
The improvement was mainly driven by a strong 26% YoY increase in urea offtakes, which reached 6.7 million tons for the year, reflecting robust agricultural demand. Additionally, other charges dropped sharply by 32% YoY to Rs21.7 billion, providing significant relief to bottom-line figures.
Key players led the charge: Fauji Fertilizer Company (FFC) recorded 16% sales growth to Rs432.4 billion and a 14% rise in profits to Rs73.5 billion. Engro Fertilizers (EFERT) and Fatima Fertilizer (FATIMA) also contributed strongly to the sector’s overall sales, which climbed 8% YoY to Rs981 billion.
Gross margins for the sector expanded notably, supported in part by periodic discounts of Rs300–400 per bag on urea and DAP products. Over the longer term, the sector has shown impressive growth, with revenues more than doubling from Rs192 billion in 2016 to Rs981 billion in 2025, while EBITDA reached Rs238 billion. However, higher borrowing costs pushed finance charges up 69% YoY to Rs24.8 billion, partially offsetting operational gains.
Analysts view the results as a sign of underlying strength in agricultural input demand despite periodic quarterly volatility seen earlier in 2025.