Barkat Frisian Agro Limited (formerly Barkat Frisian Pasteurized Egg Company) (PSX: BFAGRO) was incorporated in Pakistan as a private limited company in January 2017. The company started its commercial operations in 2019 and was converted into a public unlisted company in December 2024. After this, the company raised funds through the Initial Public Offer. The listing and trading of the company’s shares on the Pakistan Stock Exchange started in March 2025. BFAGRO is engaged in the business of poultry egg processing.
Pattern of Shareholding
As of June 30, 2026, BFAGRO has a total of 309.990 million shares outstanding which are held by 8141 shareholders. Associated companies, undertakings and related parties have the majority stake of 65.16 percent in the company. These include B&Z Enterprise (Private) Limited, Frisian Egg International B.V. and Barkat Steel (Private) Limited. Local general public accounts for 16.02 percent shares of the company while Directors, CEO, their spouse and minor children hold around 10.94 percent shares. About 3.57 percent of BFAGRO’s shares are held by Modarabas & Mutual Funds, 1.33 percent by Insurance & Takaful Companies, 1.29 percent by executives and 1.01 percent by Banks, DFIs and NBFIS. The remaining shares are held by other categories of shareholders.
Historical Performance (2025-26)
BFAGRO’s topline rode an upward trajectory over the period under consideration. Conversely, its bottomline picked up in 2025 and fell in 2026. The company’s margins which greatly improved in 2025 ticked down in 2026 except for the gross profit margin which stayed intact in 2025 and 2026. The detailed performance review of the period under consideration is given below.
In 2025, BFAGRO recorded 19.42 percent year-on-year increase in its net sales which clocked in at Rs.7247 million. This was on the back of improved demand of the company’s products – both in the local and export markets. Local sales have the majority share in the overall sales mix of the company while its export market encompasses the Middle Eastern region with the KSA, Oman and the UAE topping the list. Sale from all the export destinations registered significant growth during the year. The company has an annual capacity to process 17000 tons of eggs. In 2025, the company recorded capacity utilization of 88.20 percent versus 74.59 percent recorded in the previous year. Enhanced capacity utilization as well operational efficiency achieved through various cost management measures enabled the company to record 39.75 percent improvement in its gross profit in 2025 with GP margin clocking in at 13.49 percent versus 11.53 percent recorded in 2024. Administrative expense mounted by 56.66 percent in 2025 mainly on account of higher payroll expense. This was the result of workforce expansion from 62 employees in 2024 to 114 employees in 2025. Increased freight and forwarding charges due to elevated sales volume coupled with higher advertising & promotion budget resulted in 64.11 percent spike in distribution expense in 2025. Other expense surged by 45.25 percent in 2025 due to higher provisioning done for WWF, WPPF and ECL. Other income improved by 103.22 percent in 2025 due to tremendous income on short-term investment and mark-up on liability waived by the associated company - Frisian Egg International B.V. During the year, the company raised funds through IPO which significantly strengthened its liquidity position. These funds were utilized to meet working capital requirements and also in other strategic avenues such as the acquisition of mutual funds to boost its other income. Exchange gain posted a phenomenal growth of 863.61 percent in 2025. This was mainly the result of realized foreign exchange gain due to conversion of loan into equity. BFAGRO recorded 50.53 percent enhancement in its operating profit in 2025 with OP margin clocking in at 11.28 percent versus 8.95 percent recorded in 2024. Finance cost dipped by 35.62 percent in 2025 due to a downtick in discount rate coupled with the widespread settlement of outstanding liabilities (through repayment and conversion into equity). Lesser outstanding debt coupled with improved cash position and increased equity due to issuance of shares through IPO and right offer resulted in a gearing ratio of 7.34 percent in 2025 versus 37.85 percent recorded in the previous year. No current tax expense was incurred in 2025 which was in accordance with the Clause (126E) of Part I of The second schedule of Income Tax Ordinance, 2001 on account of the company’s operations in the Special Economic Zone. This coupled with the effect of deferred tax resulted in the tax credit of Rs.3.02 million in 2025 versus tax expense of Rs.40.79 million recorded in 2024. BFAGRO posted net profit of Rs.741.687 million in 2025, up 95.30 percent year-on-year. This translated into EPS of Rs.3.68 in 2025 versus EPS of Rs.4.22 recorded in the previous year. NP margin picked up from 6.26 percent in 2024 to 10.23 percent in 2025.
In 2026, BFAGRO’s net sales improved by 6.05 percent to clock in at Rs.7685.66 million. This largely came on the back of higher local sales. While export sales to the KSA greatly improved in 2026, other destinations such as the UAE, Oman and Bahrain posted muted demand. This was due to the ongoing tensions in the Middle East. During the year, the company commenced the commercial operations of its Faisalabad facility. This pushed up the company’s installed capacity from 17,000 tons in 2025 to 29,000 tons in 2026. The company recorded capacity utilization of 53.39 percent in 2026. Cost of sales ticked up in line with the topline growth which translated into 6.05 percent higher gross profit and a constant GP margin of 13.49 percent in 2026. Distribution expense surged by 18.80 percent in 2026 due to higher freight & forwarding charges incurred during the year. 63.26 percent spike in administrative expense in 2026 was the result of greater payroll expense, legal & professional charges and Ijarah rental charges incurred during the year. The company also expanded its workforce to 133 employees in 2026. Other expense dipped by 4.18 percent in 2026 due to lesser provisioning done for WWF, WPPF and ECL. Other expense was offset by 57.94 percent stronger other income recorded in 2026 which was primarily the result of fair value gain on biological assets. Dividend income and income on short-term investments also buttressed BFAGRO’s other income in 2026. Exchange gain deteriorated by 82 percent in 2026 due to high-base effect as the company realized exchange gain due to conversion of loan into equity in the previous year. All these factors translated into 6.75 percent diminution in operating profit in 2026 with OP margin falling down to 9.92 percent. Finance cost slid by 23 percent in 2026 due to lower average borrowing rates. This was despite increased outstanding borrowings at the end of the year which translated into a higher gearing ratio of 11.83 percent in 2026. While the company operates in the SEZ zone and is entitled to a 10-year tax holiday, it recorded a deferred tax expense of Rs.74.46 million in 2026 due to temporary differences between tax and accounting depreciation relating to fixed asset additions at the Faisalabad factory. Net profit dwindled by 15.43 percent to clock in at Rs.627.24 million in 2026. This translated into EPS of Rs.2.02 and NP margin of 8.16 percent in 2026.
Recent Performance (1QFY27)
During the first quarter of the ongoing fiscal year, BGAFRO registered a decent 21 percent growth in its net sales which clocked in at Rs.2274.11 million. This appears to be the result of improved sales volume, efficient sales mix and better pricing. Cost of sales surged by a lower magnitude of 15.56 percent in 1QCY27 likely supported by improved capacity utilization, stable raw material prices and the company’s efforts for backward integration and energy diversification. Gross profit enhanced by 59.69 percent in 1QFY27 with GP margin clocking in at 16.48 percent versus 12.50 percent in 1QFY26. Distribution and administrative expense spiked by a massive 135.61 percent and 57.72 percent respectively in 1QFY27 which appear to be the result of increased production and sales volume. Higher provisioning done for WWF, WPPF and ECL might have pushed up the other expense by 25.51 percent in 1QFY27. However, it was offset by 80.77 percent stronger other income recognized during the year which was most likely the consequence of fair value gain on biological assets and gain on disposal of fixed assets in 1QFY27. Exchange gain also strengthened by 330.61 percent in 1QFY27 further buttressing the company’s financial performance. All these factors translated into 47 percent enhancement in the company’s operating profit in 1QFY27 with OP margin clocking in at 11 percent versus 9.12 percent in 1QFY26. Finance cost mounted by 178.25 percent in 1QFY27 due to surge in short-term and long-term liabilities during the period. Net profit improved by 37.80 percent to clock in at Rs.222.10 million in 1QFY27. This translated into EPS of Rs.0.72 and NP margin of 9.77 percent in 1QFY27 as against EPS of Rs.0.52 and NP margin of 8.58 percent recorded in 1QFY26.
Future Outlook
The company plans to strengthen its supply chain by pursuing backward integration. This will not only ensure timely supplies and reduce the company’s reliance on external suppliers but will also stabilize its raw material cost which will enhance the company’s competitiveness in both local and export markets. In line with the company’s aim to attain backward integration, it has made investment in the newly incorporated company, Agrolayer Protein Farm Private Limited (APFL), thereby acquiring 26 percent shareholding in the company making it an associated company of BFAGRO. This was done for the establishment of second poultry farm of the company. The Faisalabad facility has already added to the company’s production capacity and its ability to cater increased demand from the local and international markets.
The company is also working on the establishment of egg powder production facility at Karachi. To enhance its geographical footprint and to boost its export sales, BFAGRO has also announced the successful establishment of its wholly owned subsidiary – Barkat Frisian Agro Global LLC-FZ – in the Meydan free zone of the UAE.
The aforementioned measures undertaken by the company to control its cost and enhance its sales will bear fruit in the coming times and will buttress the margins and profitability of the company.
Downside risks include higher shipping and insurance cost due to regional tensions in the Middle East market, delays in the delivery of export orders and higher fuel cost which could take its toll on the production and freight costs.