The combined profits of companies in the KSE-100 index rose by 1.8% year-on-year, reaching Rs 1.66 trillion in fiscal year 2025, according to a report by Arif Habib Limited.
Commercial banks led the growth, posting a 9% increase in profits to Rs 592 billion. Higher net interest income, capital gains, and lower provisioning contributed to the strong performance. Fertilizer companies also supported the rise, with profits up 7% to Rs 138 billion. Mergers and stronger margins helped boost overall earnings in this sector.
The auto industry saw significant gains, with profits jumping 39% to Rs 65 billion. Lower inflation, reduced interest rates, and renewed consumer demand were key drivers. Cement manufacturers also performed well, recording a 41% rise to Rs 155 billion, helped by improved power generation mix, lower financing costs, and retention pricing. Pharmaceutical companies outpaced all others, achieving a 119% surge to Rs 27 billion, supported by revised medicine pricing, regulatory approvals, and lower raw material costs.
However, not all sectors fared well. Energy and export-oriented industries faced declines. Oil and gas exploration companies’ profits fell 20% to Rs 351 billion due to lower production and weak international prices. Power producers saw a 40% drop to Rs 49 billion. Textile companies experienced a 55% decline, and chemicals fell 41%, pressured by high energy costs and weak margins.
The technology sector showed improvement, narrowing losses to Rs 5.2 billion from Rs 10.2 billion, helped by Systems Limited’s 41% profit growth.
Arif Habib’s analysis, covering 79 companies representing 93% of KSE-100 market capitalization, indicates that while banking, auto, cement, and pharmaceuticals drove overall growth, weaknesses in energy and export sectors highlight uneven corporate performance in FY25.
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