KSE-100 companies post Rs456 billion profit in 2QFY26, dividends rise 12%

Companies listed at the Pakistan Stock Exchange’s KSE-100 index reported cumulative earnings of Rs456 billion in the second quarter of FY2026, marking a 3% increase compared to Rs443 billion in the same period of FY2025, according to Topline Pakistan Research.

In dollar terms, profitability stood at $1.6 billion during the quarter. Excluding exploration and production (E&P) companies and banks, profits grew by 15% year-on-year. This brought total earnings for the first half of FY2026 to Rs919 billion, reflecting a 7% increase over the corresponding period last year. 

On a sequential basis, however, earnings declined by 1% quarter-on-quarter.

Topline’s analysis is based on 97 companies that have announced results, representing 99.5% of the KSE-100 market capitalisation. The research firm noted that inclusion of the remaining companies is unlikely to materially change the overall profitability trend.

Sector-wise, banking sector earnings declined by 3% year-on-year and 9% quarter-on-quarter to Rs148.9 billion in 2QFY26. The annual decline was attributed to lower non-interest income, particularly reduced capital gains, while higher operating expenses weighed on quarterly performance.

The E&P sector recorded a 15% year-on-year and 7% quarter-on-quarter decline in profits to Rs74.2 billion, mainly due to lower gas production and a drop in crude oil prices.

Fertiliser sector earnings fell by 12% year-on-year to Rs43.1 billion, reflecting margin pressure driven by higher discounts during the period.

Cement sector profits declined by 3% year-on-year to Rs45.4 billion, impacted by lower retention prices and reduced other income. On a quarterly basis, earnings increased by 8%, supported by a 13% rise in domestic dispatches.

The automobile sector posted a 36% year-on-year and 9% quarter-on-quarter increase in earnings, supported by a 39% annual and 9% sequential rise in passenger car sales, driven by new variant launches and improving purchasing power.

The food and personal care sector recorded a 3.6 times increase in profitability to Rs28.6 billion, primarily due to one-off gains by National Foods from the sale of its subsidiary stake.

Pharmaceutical sector earnings rose by 61% year-on-year and 42% quarter-on-quarter, supported by a decline in global active pharmaceutical ingredient costs and lower financial charges.

Among other sectors, power and textile companies reported earnings growth of 249% and 64% year-on-year, respectively. In contrast, technology, oil marketing companies (OMCs), and chemical sectors recorded declines of 48%, 41%, and 25% year-on-year.

KSE-100 companies announced cash dividends of Rs308 billion during the quarter, up 12% compared to Rs275 billion in the same period last year. The increase was led by a higher payout from National Bank.

This resulted in a dividend payout ratio of 67% in 2QFY26, compared to 62% in the same period last year. On a quarterly basis, dividend payouts doubled, in line with half-yearly and annual distribution trends.

The banking sector remained the largest contributor to dividends with payouts of Rs168 billion, followed by E&P at Rs41 billion and fertilisers at Rs23 billion.

Within banks, National Bank led with a payout of Rs74.5 billion, followed by United Bank Limited at Rs20 billion, Meezan Bank at Rs12.5 billion, and MCB Bank at Rs10.7 billion.

In the E&P sector, Oil and Gas Development Company announced dividends of Rs18.3 billion, followed by Mari Energies at Rs9.9 billion, Pakistan Oilfields at Rs7.8 billion, and Pakistan Petroleum at Rs5.4 billion.

In fertilizers, Fauji Fertilizer declared Rs12.1 billion in dividends, while Engro Fertilizers and Fatima Fertilizer announced Rs5.3 billion and Rs5.2 billion, respectively.

Within pharmaceuticals, Abbott Laboratories and GlaxoSmithKline reported payouts of Rs3.9 billion and Rs3.8 billion, respectively, while Highnoon Laboratories declared Rs2.6 billion.

In the automobile sector, Millat Tractors announced Rs3.8 billion in dividends, followed by Indus Motors at Rs3.6 billion, while Sazgar declared Rs0.9 billion.

In food and personal care, Nestle Pakistan led with Rs11.6 billion in payouts, followed by FrieslandCampina at Rs2.6 billion, and Rafhan Maize and Unilever at Rs1.4 billion each.

In cement, Bestway Cement and Cherat Cement announced dividends of Rs5.9 billion and Rs0.3 billion, respectively.

In the power sector, Hub Power Company and Kot Addu Power Company declared dividends of Rs6.5 billion and Rs1.3 billion, respectively, during the quarter.