Fertiliser companies’ earnings rise in 2025

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A farmer disperses fertiliser in a rice paddy field on the outskirts of Lahore. — AFP/File
A farmer disperses fertiliser in a rice paddy field on the outskirts of Lahore. — AFP/File

KARACHI: Pakistan’s listed fertiliser sector recorded the profitability of Rs141.1 billion in 2025, up by 10 per cent year on year (YoY) due to an increase in urea offtakes, higher other income, and lower other charges.

The net sales of the sector clocked in at Rs981.6bn in 2025, up by 7pc YoY amid higher Urea and DAP off takes, Muhammad Abdul Rafay of Top Line Securities said.

During 2025, Urea offtakes soared by two per cent YoY with 6.7 million tonnes, whereas, while DAP off takes decreased by 18pc YoY with 1.34m tons during the period, he said.

The gross margins of the sector slightly declined to 31pc in 2025, mainly due to discounts offered by companies.

The sector’s finance cost rose by 9pc YoY, reaching Rs24.8bn in 2025.

Moreover, fertiliser sector companies disbursed Rs111.8bn, up 72pc YoY, to their shareholders as dividends during 2025.

Rafay expects the industry to remain stable, supported by the strong urea demand and seasonal agricultural activities. Similarly, the margins are expected to ease with the rollback of dealer discounts coupled with normalisation in urea inventory levels, he said.

Published in Dawn, March 14th, 2026

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