Pakistan’s listed refinery sector recorded a major financial recovery in FY2026, posting a combined profit of Rs. 54.8 billion after suffering a loss of Rs. 10.5 billion in the previous financial year.
According to a report by Arif Habib Limited, the strong turnaround was supported by improved petrol and diesel refining margins, higher refinery production and stronger sales during the year.
The sector’s financial performance showed a significant improvement across several key indicators. Revenue increased by 26.9 percent, reaching Rs. 1.54 trillion in FY2026 compared with Rs. 1.22 trillion in FY2025.
Gross profit also recorded a sharp rise, climbing to Rs. 107.4 billion from just Rs. 10.4 billion a year earlier. This pushed the sector’s gross profit margin to 7 percent, compared with only 0.9 percent in FY2025.
The improved performance came as petroleum prices and refinery activity increased during the financial year. Ex-refinery prices for motor spirit, commonly known as petrol, rose by around 17 percent.
High-speed diesel prices also increased, with ex-refinery prices recording growth of approximately 19 percent. Higher product prices provided additional support to refinery revenues during FY2026.
Production levels also moved higher during the year. Total petroleum product output from the listed refinery sector increased by 13.4 percent to 11.2 million tons, compared with the previous year.
The increase in production was accompanied by better utilization of refinery capacity. Overall refinery utilization improved to 55 percent in FY2026, up from 48 percent in FY2025.
The improvement in utilization indicates that refineries operated at a higher level of their available capacity. This helped companies benefit from stronger demand and improved refining economics during the year.
The sector’s net profit margin reached 3.6 percent in FY2026, highlighting the improvement in profitability compared with the loss-making position recorded in the previous financial year.
The sharp change in earnings comes after a difficult period for Pakistan’s refinery industry. Refiners have faced pressure from weak margins, fluctuating petroleum prices, lower capacity utilization and broader challenges within the domestic energy market.
The latest financial results suggest that improved refining margins and greater operating activity played an important role in reversing those pressures during FY2026.
Higher sales and production also helped listed refineries generate stronger revenues. The combination of better pricing, increased output and improved capacity utilization provided multiple sources of support for the sector’s earnings.
For Pakistan’s energy industry, refinery performance remains closely linked to domestic fuel demand, international crude oil prices, petroleum product prices and refinery operating efficiency.
The recovery in FY2026 may therefore provide an important indication of changing conditions across the country’s downstream petroleum sector. However, future profitability will continue to depend on market conditions and operating costs.
The figures reported by Arif Habib Limited show that Pakistan’s listed refineries moved from a combined loss of Rs. 10.5 billion in FY2025 to a profit of Rs. 54.8 billion in FY2026.
With revenue reaching Rs. 1.54 trillion and petroleum production rising to 11.2 million tons, the sector ended the financial year with considerably stronger operating and financial indicators than the previous year.
