Engro Holding Company (ENGROH) is projecting strong growth across its businesses, with management highlighting expansion opportunities in telecom towers, fertilizers, and coal mining, according to a briefing with Topline Securities.
Engro Corp’s consolidated revenue has grown at a six-year compound annual growth rate of 21%, reaching Rs. 540 billion ($1.9 billion), while net profit rose 19% annually to Rs. 67 billion. The company recently closed a $563 million deal with VEON Group Pakistan, making it the 16th largest independent telecom operator globally.
Management said the Deodar tower business has significant growth potential, with only about 3,000 of 10,500 towers currently on sharing arrangements. Over the next three to four years, EBITDA margins are expected to surpass those of Engro Enfrashare. Satellite services are not seen as a competitive threat in core tower regions due to higher costs.
On fertilizers, management said inventory levels have reached 1.2 million tons, above safety thresholds, and called on the government to allow exports after the fourth quarter of 2025 to clear excess stock. Fertilizer demand is expected to remain steady, with no major drop in sight.
Engro Powergen Thar has collected 93% of billed receivables since inception, with outstanding receivables of Rs. 40–45 billion and recovery rates of 98–99%, providing cash flow visibility for the next two to three years. On coal, Sindh Engro Coal Mining Company is expanding mine capacity from 7.6 million tons to 11.6 million tons by 2026, with plans to further scale up to 20 million tons.
Management also said Qatar-Pakistan LNG contract renegotiations would not affect its terminal operations, which are based on a fixed-capacity payment model. Engro’s stock is currently trading at 2025E and 2026F P/E multiples of 5.2x and 6.7x.