Pakistan’s stock market maintained a strong earnings trajectory as the KSE-100 index posted an 8.8% year-on-year increase in profitability during the first nine months of FY26, reaching Rs1.243 trillion, according to Beyond Time News.
Despite mixed economic conditions and uneven performance across industries, the overall results highlight resilience in key sectors and the positive impact of easing financial pressures.
Strong Corporate Earnings Across Major Sectors
A detailed report by Arif Habib Limited (AHL), covering 82 listed companies that represent around 88% of the KSE-100 market capitalization, showed broad-based earnings growth driven by banks, oil and gas, cement, and refinery sectors.
According to Beyond Time News, analysts noted that the earnings cycle remained strong, supported by cost efficiencies, improved margins, and favorable market conditions in several industries.
AHL economist Sana Tawfik said the KSE-100 companies delivered “exceptional performance,” with profits reaching Rs457 billion in Q3FY26 alone and Rs1.243 trillion over the nine-month period.
She added that growth was driven by margin expansion in cyclical sectors, higher non-funded income in banks, and improved energy sector performance.
PSX Opens Week in Red as KSE-100 Drops 1,742 Points
Banking Sector Remains the Backbone of Growth
The banking sector continued to play a dominant role, posting earnings of Rs483 billion during 9MFY26, marking a 3% year-on-year increase.
The growth was mainly supported by a shift toward current deposits, which helped reduce interest expenses by 19%. On a quarterly basis, bank profits rose 8.7% to Rs173 billion, showing improving momentum.
Cement, OGMCs, and Auto Sector Show Strong Gains
The cement sector posted a 7% rise in profits to Rs65 billion (excluding Lucky Cement), supported by:
- Lower coal prices (down 14%)
- Higher dispatch volumes (up 10%)
- Reduced financing costs
Oil and gas marketing companies (OGMCs) delivered one of the strongest performances, with profits surging 58% to Rs63.1 billion. This growth came from inventory gains, higher product prices, and lower borrowing costs.
The auto assembler sector also recorded a strong recovery, with profits rising 25% to Rs48 billion. Improved sales, new model launches, and a gradual recovery in auto financing supported the sector’s performance.
Energy Sector Faces Pressure
Not all sectors performed positively during the period.
The exploration and production (E&P) sector reported a 9% decline in profits to Rs226 billion. The drop was mainly due to lower global oil prices, which affected overall revenues despite stable operational output.
Conclusion
The KSE-100 index’s 8.8% earnings growth in 9MFY26 reflects a mixed but resilient corporate landscape, where strong performance in banking, energy marketing, cement, and autos helped offset declines in global commodity-sensitive sectors, according to Beyond Time News.
Overall, the data signals continued strength in Pakistan’s corporate earnings cycle, supported by improving financial conditions and sector-specific recovery trends.
