4QFY26: KSE-100 companies post earnings of Rs609bn

KARACHI: Companies in the KSE-100 Index posted combined earnings of Rs609 billion in 4QFY26, up 34 percent year-on-year and 20 percent quarter-on-quarter, while full-year FY26 profitability increased 18 percent to Rs2.01 trillion, according to a report by Topline Research.

The research house said its analysis covered 88 of the 100 KSE-100 companies that had announced their results, representing around 96 percent of the index’s market capitalisation. It said inclusion of the remaining companies was not expected to materially affect the overall profitability growth trend.

In dollar terms, KSE-100 companies’ combined profitability stood at USD2.0 billion during the fourth quarter.

The exploration and production (E&P) sector recorded the largest increase among major sectors, with profitability rising 2.6 times year-on-year and 2.3 times quarter-on-quarter to Rs214.2 billion in 4QFY26. Topline attributed the increase mainly to a substantial tax reversal following the Federal Constitutional Court’s decision on super tax. The sector’s FY26 profitability increased 32 percent to Rs461 billion.

The banking sector posted earnings of Rs165.7 billion in 4QFY26, up 3 percent year-on-year but down 2 percent quarter-on-quarter. The sequential decline was attributed to higher non-interest expenses and lower net interest income. Full-year banking sector profitability increased 4 percent to Rs648.6 billion.

Cement sector earnings increased 27 percent year-on-year and 38 percent quarter-on-quarter to Rs54.3 billion in 4QFY26.

The annual increase was attributed to higher net sales and other income, while the quarterly growth was driven by higher gross profit. For FY26, sector profitability rose 14 percent to Rs182.8 billion, supported mainly by higher net sales following a 10 percent increase in domestic dispatches.

Fertilizer sector profitability rose 35 percent year-on-year and 70 percent quarter-on-quarter to Rs49.5 billion in the fourth quarter. Topline said the year-on-year increase was driven by higher urea volumetric sales, while the sequential increase primarily reflected one-off gains from SIDC-related discounting income.

The automobile sector recorded a 42 percent year-on-year and 4 percent quarter-on-quarter increase in earnings to Rs31.4 billion. The increase was attributed to higher sales and improved auto financing. Full-year sector profitability increased 33 percent to Rs108.2 billion.

Food and Personal Care companies posted earnings of Rs15.8 billion, up 7 percent year-on-year but down 13 percent quarter-on-quarter. The report attributed the quarterly decline mainly to the Middle East conflict, which pressured sector margins by 28 percent quarter-on-quarter.

Refinery sector profitability increased 132 percent year-on-year to Rs1.1 billion, primarily due to higher gross refining margins. However, earnings declined 96 percent quarter-on-quarter because of inventory losses and one-off adjustments.

Pharmaceutical sector earnings fell 10 percent year-on-year and 37 percent quarter-on-quarter to Rs5.3 billion in 4QFY26. The sequential decline was attributed to lower volumetric sales and a one-off adjustment at The Searle Company.

Among other sectors, Power, Chemicals and Textiles recorded year-on-year earnings growth of 39 percent, 108 percent and 132 percent, respectively. Oil marketing companies, meanwhile, reported a combined loss of Rs21 billion, mainly due to inventory losses incurred by Pakistan State Oil.

KSE-100 companies announced Rs291.1 billion in cash dividends during 4QFY26, up 3 percent from Rs281.6 billion in the corresponding quarter of FY25. The quarterly payout represented around 48 percent of earnings, compared with 62 percent in 4QFY25.

On a quarter-on-quarter basis, dividends increased 93 percent, reflecting the typical increase in corporate payouts around the end of the fiscal year.

For the full fiscal year, cash dividends announced by KSE-100 companies reached Rs904.4 billion, an increase of 11 percent, with the payout ratio at around 45 percent.

The banking sector was the largest contributor to fourth-quarter dividends, announcing Rs92 billion, followed by E&Ps with Rs85 billion and fertilizer companies with Rs23 billion.

Within the banking sector, United Bank Limited (UBL) announced Rs20.0 billion in dividends, followed by Meezan Bank (MEBL) with Rs14.4 billion and Standard Chartered Bank Pakistan (SCBPL) with Rs11.6 billion.

Among E&P companies, Oil and Gas Development Company (OGDC) announced the largest dividend at Rs25.8 billion. Mari Petroleum (MARI) announced Rs22.4 billion, followed by Pakistan Oilfields (POL) at Rs20.6 billion and Pakistan Petroleum (PPL) at Rs16.3 billion.

In the fertilizer sector, Fauji Fertilizer Company (FFC) announced Rs20.6 billion in dividends, while Engro Fertilizers (EFERT) announced Rs2.3 billion.

Within the automobile sector, Millat Tractors (MTL) announced Rs4.4 billion in dividends, followed by Indus Motor Company (INDU) at Rs3.6 billion and Sazgar Engineering Works (SAZEW) at Rs1.2 billion.

In Food and Personal Care, Nestle Pakistan (NESTLE) announced Rs9.6 billion, followed by Unilever Pakistan Foods (UPFL) at Rs2.2 billion and National Foods (NATF) at Rs1.2 billion.

Among cement companies, Lucky Cement (LUCK) announced Rs7.3 billion in dividends, followed by Bestway Cement (BWCL) at Rs5.9 billion and Fauji Cement (FCCL) at Rs3.7 billion.

In the power sector, Hub Power Company (HUBCO) announced Rs6.5 billion in dividends, while Kot Addu Power Company (KAPCO) declared Rs1.3 billion.

The pharmaceutical sector, which typically records no dividend payout in the March quarter, announced Rs4.6 billion in dividends during 4QFY26. GlaxoSmithKline Pakistan (GLAXO) paid Rs2.2 billion, Haleon Pakistan (HALEON) Rs1.2 billion and AGP Limited (AGP) Rs560 million.

Overall, the Topline analysis showed that the earnings recovery during 4QFY26 was supported by strong contributions from E&Ps, banks, cement, fertilizer and automobile companies, while dividend distributions also increased during the fiscal year, reflecting higher payouts by several major sectors and companies.

Copyright Business Recorder, 2026