Engro Holdings Reports Rs. 73.3 Billion Profit for Half-Year Ended June 2025

Engro Holdings Limited (PSX: ENGROH), formerly Dawood Hercules Corporation Limited, posted a consolidated Profit-After-Tax (PAT) of Rs. 73.3 billion for the half year ended June 30, 2025, compared to Rs. 13.82 billion in the same period last year, with earnings per share (EPS) of Rs. 29.54 versus Rs. 8.09.

The sharp increase primarily stems from the reversal of previously recognized impairment linked to thermal energy assets that had been classified as “held for sale” in 2023 and 2024. Excluding this one-off adjustment, consolidated PAT stood at Rs, 19.6 billion (attributable to shareholders: Rs. 9 billion).

On a standalone basis, the company reported PAT of Rs. 67 million, significantly lower than Rs. 4.2 billion in the same period last year, translating into an EPS of Rs. 0.06 versus Rs. 8.68 in 2024. The decline reflects the transfer of income-generating investments to DH Partners under the Scheme of Arrangement effective January 1, 2025, as well as reduced dividends from Engro Corp, which is retaining earnings to fund the Deodar towers acquisition.

Creation of Engro Holdings: Effective January 1, Engro Corporation became a wholly owned subsidiary, lifting profit attributable to owners from 39.97% last year to 100%. Share issuance increased outstanding shares to 1.204 billion, impacting EPS comparability.

Thermal Energy Assets: Termination of divestment agreements in April led to reclassification of thermal assets as continuing operations, triggering an impairment reversal of Rs. 53.8 billion (Owners’ Share: Rs. 26.6 billion).

Acquisition of Deodar Towers: On June 3, 2025, Engro consolidated Deodar’s ~10,600 towers into its accounts following the PMCL transaction. Assets and liabilities were provisionally recognized at Rs. 220.6 billion and Rs. 167.7 billion respectively.

The board decided against declaring an interim dividend for 2025, prioritizing funding requirements for the Deodar towers acquisition, described as a transformative investment expected to deliver durable cash flows and long-term value for shareholders.