Karachi: Several key sectors posted exceptional earnings growth in the first nine months of FY26, helping lift overall KSE-100 profitability by 8.8% year-on-year to Rs1.243 trillion, revealed Arif Habib Limited’s latest corporate results analysis.
While the overall index earnings grew at a steady pace, certain sectors delivered outstanding performances.
The Refinery sector recorded a massive 355% YoY surge in net profit to Rs34 billion, driven by higher volumes and significantly improved HSD crack spreads.
Textile Composite companies witnessed a remarkable 146% jump in profitability to Rs12 billion, benefiting from lower raw material costs, reduced finance charges, and better other income.
Oil & Gas Marketing Companies (OGMCs) also posted strong results with a 58% increase in earnings to Rs63.1 billion, aided by inventory gains and higher average prices.
The Cement sector (excluding Lucky Cement) reported a 7% rise in bottom-line to Rs65 billion, supported by a 14% decline in coal prices and 10% growth in dispatches.
The Auto sector (excluding Atlas Honda and Honda Cars) also recovered nicely, posting 25% YoY growth to Rs48 billion on the back of improved sales volumes and new model launches.
On the flip side, the E&P sector continued to face pressure, with earnings declining 9% YoY to Rs226 billion due to lower oil prices and production cuts. Fertilizer earnings dipped 3% YoY to Rs109 billion.
The report noted that the banking sector, which contributes the largest share, grew modestly by 3% YoY to Rs483 billion.
Arif Habib Limited concluded that declining interest rates and cost-side improvements have started supporting corporate profitability, though challenges remain in a few commodity-linked sectors.