KSE-100 firms’ profits jump 19% YoY to Rs491 billion in 3QFY26 as banks, autos drive growth

Companies listed on the Pakistan Stock Exchange’s KSE-100 index reported combined earnings of Rs491 billion in the third quarter of FY2026, up 19% year-on-year from Rs412 billion in the same period last year and 8% higher than the previous quarter, according to data compiled by Topline Pakistan Research. 

Topline analysis covered 94 out of 100 companies that have announced results, representing 95.34% of the KSE-100 market capitalisation.

In dollar terms, profitability stood at $1.8 billion during the quarter, taking cumulative earnings for the first nine months of FY2026 to Rs1,410 billion, reflecting a 10% increase compared to the same period last year.

Excluding oil marketing companies and refineries, profits rose 5% year-on-year but declined 2% quarter-on-quarter, as elevated earnings in the energy segment were driven by inventory gains and higher gross refinery margins linked to rising oil prices.

The banking sector posted earnings of Rs169.7 billion in 3QFY26, increasing 2% year-on-year and 14% quarter-on-quarter. The rise was supported by higher non-interest income, including capital gains of Rs44.5 billion recorded by United Bank Limited, Bank Alfalah Limited and Faysal Bank Limited.

The exploration and production sector reported profits of Rs92.7 billion, remaining largely flat year-on-year but rising 25% quarter-on-quarter, supported by a 23% increase in crude oil prices, lower effective tax rates and the absence of dry wells at Oil and Gas Development Company Limited.

Cement sector earnings stood at Rs39.5 billion, up 9% year-on-year but down 15% quarter-on-quarter due to lower domestic dispatches and higher fuel and power costs.

The fertiliser sector recorded profits of Rs29.1 billion, declining 4% year-on-year and 36% quarter-on-quarter, reflecting a 6% drop in urea sales year-on-year and a 59% decline quarter-on-quarter due to seasonal demand patterns.

The automobile sector posted a 24% increase year-on-year and a 28% rise quarter-on-quarter, supported by a 39% year-on-year and 21% quarter-on-quarter increase in passenger car sales, according to PAMA data.

The food and personal care sector reported earnings of Rs18.2 billion, up 15% year-on-year but down 45% quarter-on-quarter due to a high base effect in the previous quarter. Excluding one-off gains by National Foods, profits in the segment increased 36% quarter-on-quarter.

The pharmaceutical sector posted a 27% increase year-on-year but a 29% decline quarter-on-quarter, reflecting seasonal trends.

Among other sectors, the power sector recorded flat year-on-year growth and a 3% increase quarter-on-quarter, while oil marketing companies reported a 3.95 times increase year-on-year and 3.91 times rise quarter-on-quarter. The chemicals sector recorded a 3% increase year-on-year and a 24% rise quarter-on-quarter.

Dividends rise 2% YoY to Rs139.5 billion 

Companies declared cash dividends of Rs139.5 billion in 3QFY26, up 2% year-on-year from Rs136 billion in 3QFY25, but down 54% quarter-on-quarter due to a high base effect. The dividend payout ratio stood at 28.4% compared to 33% in the same period last year.

The banking sector remained the largest contributor with payouts of Rs74 billion, followed by the exploration and production sector at Rs19 billion and fertiliser companies at Rs15 billion.

Among individual firms, United Bank Limited announced dividends of Rs20 billion, followed by Meezan Bank Limited at Rs13.5 billion, MCB Bank Limited at Rs10.7 billion and Habib Bank Limited at Rs8.8 billion.

In the exploration sector, Oil and Gas Development Company Limited declared approximately Rs14 billion, while Pakistan Petroleum Limited announced Rs5.4 billion.

In fertilisers, Fauji Fertilizer Company Limited announced Rs12.1 billion, while Engro Fertilizers Limited declared Rs2.7 billion.

Within food and personal care, Unilever Pakistan Foods Limited led payouts with Rs2.1 billion, followed by National Foods Limited at Rs932 million, Rafhan Maize Products Company Limited at Rs868 million and Murree Brewery Company Limited at Rs277 million.

No company in the pharmaceutical sector announced dividends during the quarter.

In the automobile sector, Indus Motor Company declared Rs4 billion, while Sazgar Engineering Works Limited announced Rs1.2 billion.

In the power sector, Hub Power Company declared Rs6.5 billion, while Nishat Power Limited announced Rs531 million.

In the cement sector, Bestway Cement Limited declared Rs5.96 billion in dividends during the quarter.