KSE-100 Companies’ Earnings Rise 26% to Rs1.64trn in 9M

The report, based on the financial results of 85 companies representing approximately 96 per cent of the KSE-100 Index weightage

Pakistan Stock Exchange’s KSE-100 index companies recorded a 26 per cent year-on-year increase in profitability to Rs1.638 trillion during the first nine months of calendar year 2026, driven by strong earnings growth in the exploration and production, refinery, oil marketing, fertilizer and automobile sectors, according to a report by Arif Habib Limited (AHL).

The report, based on the financial results of 85 companies representing approximately 96 per cent of the KSE-100 Index weightage, showed that aggregate earnings reached Rs1,638 billion during this the period.

The companies covered in the analysis also represent nearly 80 per cent of the total market capitalisation of the KSE All Index.

Among major sectors, exploration and production (E&P) companies posted the strongest contribution to earnings growth, with profitability surging 64% year-on-year to Rs420 billion. The increase was driven by higher international oil prices, improved oil and gas production following reduced production curtailments from March 2026, and a lower effective tax rate due to one-off reversals of super tax provisions.

Commercial Banks profitability

Commercial Banks remained the largest contributor to overall profitability, recording combined earnings of Rs497 billion, up 1% compared with the corresponding period last year. Stable core income from asset yield repricing supported earnings, while balance sheet adjustments affected interest expenses. Provisioning reversals, supported by non-performing loan recoveries and improving macroeconomic conditions, also contributed to the sector’s performance.

Fertilizer Sectorrecorded a 23% increase in profitability to Rs151 billion, mainly driven by stronger contributions from Fauji Fertilizer Company (FFC) and Engro Fertilizers (EFERT), supported by robust offtakes and improved DAP margins. Fatima Fertilizer also contributed to earnings growth through operational improvements.

Cement Sector profitability

Cement Sector profitability increased 17% year-on-year to Rs142 billion during the period. The improvement was supported by a 6% increase in total dispatches and a 7% rise in cement prices. Stable gross margins and lower finance costs further supported earnings, although weaker interest income partially offset the gains.

Power Sector posted an 18% increase in net profit to Rs44 billion, primarily due to higher earnings from associates, increased other income, declining finance costs and a lower effective tax rate at Hub Power Company (HUBC), while gross profit margins remained largely stable.

Automobile assemblers recorded a 25% increase in earnings to Rs55 billion, supported by higher sales volumes, new model launches and additional income from SIDC gains.

Oil Marketing Companies profits

Oil Marketing Companies (OMCs) sector also delivered strong performance, with profitability increasing 62% year-on-year to Rs46 billion. Higher petroleum product prices generated inventory gains, while lower finance costs provided additional support.

Meanwhile, Refinery Sector earnings surged nearly 40 times to Rs56 billion during the period, driven by higher production volumes and a sharp expansion in crack spreads, despite deemed duty-related reversals booked by Attock Refinery Limited (ATRL) in the fourth quarter of FY26.

Textile Composite Companies recorded a 65% increase in profitability to Rs16 billion, compared with Rs9.7 billion in the corresponding period last year. Higher net sales, lower finance costs, improved other income and the removal of super tax for exporters contributed to the improvement.

Pharmaceutical Companies and food sector businesses also posted earnings growth of 16% and 11%, respectively, while chemical companies recorded a 39% increase. Leather sector profitability rose 7%, and other companies included in the analysis posted 44% growth.

However, some sectors experienced a decline in profitability during the nine-month period.

Investment Banks recorded a 24% year-on-year decline in earnings to Rs31 billion, despite improved gross margins. The decline was primarily attributed to an 87% drop in other income and a higher effective tax rate.

Technology Sector’s profitability decreased 11% to Rs6.7 billion from Rs7.6 billion a year earlier. The decline was mainly attributable to TRG Pakistan, which reported a loss of Rs11.4 billion during 9MCY26 compared with a profit of Rs6.8 billion in the corresponding period last year.

The miscellaneous sector also recorded a 17% decline in earnings. Overall, the AHL report highlights broad-based improvement in corporate profitability, with E&P, refinery, oil marketing, fertilizer and automobile companies emerging as major drivers of earnings growth in the KSE-100 Index during the first nine months of 2026.