{
  "id": 12507271,
  "title": "Pharma listed cos: FY26 profits surge 28pc to Rs42.2bn YoY",
  "url": "https://urgent.news/2026/10/07/pharma-listed-cos-fy26-profits-surge-28pc-to-rs42-2bn-yoy",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-07T00:37:01.000Z",
  "source": {
    "name": "Business Recorder",
    "slug": "business-recorder",
    "url": "https://www.brecorder.com/news/40442970/pharma-listed-cos-fy26-profits-surge-28pc-to-rs422bn-yoy"
  },
  "original_language": "en",
  "account": "Pakistan's pharmaceutical sector reported a 28% surge in profits for the fiscal year 2026 (FY26), reaching Rs42.2 billion, according to a research report. This growth was driven by price-led increases and reduced finance costs. However, earnings for the year declined 2% YoY and 26% QoQ, primarily due to SEARL's losses. Excluding SEARL, sector profitability still grew 22% YoY. Despite the earnings improvement, the sector's market capitalization excluding SEARL and Liven Pharma only saw a 0.4% YoY increase. Net sales grew 10% YoY to Rs377.9 billion in FY26, driven by higher prices. In Q4FY26, sales were up 3% YoY but down 3% QoQ to Rs88.9 billion. Abbott Laboratories contributed 20% of sales, followed by GlaxoSmithKline at 18%, Haleon at 11%, and SEARL at 10%. The sector's gross margin hit an all-time high of 42.8% in FY26, up from 38.9% in FY25. Net inventories averaged around 60 days. AGP Limited had the highest gross margin at 60.4% in FY26. Selling and distribution expenses increased 21% YoY to Rs69.5 billion in FY26. Finance costs dropped 42% YoY to Rs3.6 billion in FY26. Other income rose 2% YoY to Rs6.5 billion in FY26, with a significant increase from Hoechst Pakistan Limited. The effective tax rate (ETR) was 42.5% in FY26, up from 39.8% in FY25. Looking ahead, the sector expects a recovery in volumes from the second half of 2027, supported by a low base effect in 2026 and expanding product portfolios.",
  "summary": "KARACHI: Profitability of Pakistan’s listed pharmaceutical sector increased 28 percent year-on-year (YoY) to Rs42.2 billion in FY26, mainly supported by price-led growth and lower finance costs, according to a Research report issued. However, sector earnings declined 2 percent YoY and 26 percent quarter-on-quarter (QoQ) in 4QFY26, primarily due to the loss posted by The Searle Company Limited…",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}