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Karachi: Engro Polymer and Chemicals Limited (EPCL) is projected to report a significant increase in losses for the third quarter of 2025, according to a recent analysis by AKD Securities Limited. The company is anticipated to post a loss of 888 million Pakistani Rupees, translating to a loss per share of PKR 0.98. This marks a considerable rise from the 698 million Rupees loss, or PKR 0.77 per share, recorded during the same period last year.
The anticipated financial downturn is attributed mainly to a 9 percent year-on-year revenue decline, driven by lower prices for polyvinyl chloride (PVC) and decreased chlor-alkali offtakes. Compounding the financial strain, gross margins are expected to shrink to 4.0 percent, pressured by reduced core PVC margins and escalating gas prices.
AKD Securities has maintained a “Sell” recommendation for EPCL, setting a target price of PKR 23 per share by June 2026. The firm cites persistent high energy costs and depressed margins as factors likely to continue undermining the company’s profitability.
The projections underscore the ongoing challenges faced by EPCL amid fluctuating commodity prices and rising operational costs, posing significant hurdles for the company in achieving financial stability in the near term.