04/05/2026 05:19 AST
The Qatar Stock Exchange (QSE) listed companies have reported total net earnings of QR12.76bn in the first quarter (Q1) of this year with banks, industrials and telecom sectors contributing as much as 83%.
However, the corporate profitability was weak as total net earnings declined 3.29% year-on-year in Q1-2026 compared to a marginal 0.92% growth the corresponding period of 2025.
The financial results exclude Al Faleh Educational Holding Company, whose fiscal year ends at the end of August and that Qatar German Medical Devices, which has not been disclosed.
The decline in the overall net profitability of the listed companies has been largely attributed to the industrials, transport, consumer goods and banking sectors, whose net earnings shrank year-on-year; while a slowdown was seen in the net earnings growth of the insurance and real estate sectors in the review period.
"There has been a mix of external shocks (Iran war and its concomitant supply disruptions) and in-situ financial pressures (due to lower revenues and higher financing costs). Its culmination has resulted in a broad earnings decline," an analyst with a leading commercial bank told Gulf Times.
The net earnings of industrials sector, which has 10 constituents, plummeted 17.53% year-on-year to QR1.83bn in Q1-2026 against a 6.36% slump in the same period of 2025. The sector contributed 14.34% to the overall net profits of the listed companies in the review period against 16.82% in Q1-2025.
Supply chain disruptions and halted production had its impact on the industrial sector, which has a direct linkage with the country's energy sector, where force majeure was applied after projectile attack on its facilities in Ras Laffan Industrial City.
The transport sector, which has three listed constituents, saw its net earnings plunge 9.01% year-on-year to QR769.18mn compared to a 0.9% jump in the corresponding period of 2025. The sector contributed 6.03% to the total net profits in January-March 2026 against 6.44% the same period of 2025.
The consumer goods and services sector, which has 15 listed entities, saw 3.07% year-on-year shrinkage in net profit to QR465.72mn in the first three months of this year compared to a 0.62% rise the year ago period. The sector contributed 3.68% to the overall net profitability in the review period against 3.63% the same period of 2025. Weak demand due to the prevailing economic situation had its effect on the sector, one of the analysts said.
The banks and financial services sector, which has 13 listed entities, reported 1.63% year-on-year decrease in net profit to QR7.563bn against 1.08% jump the previous year period, largely on account of "cautious" credit environment.
The sector contributed 58.78% of the total net profits of the listed companies in Q1-2026 against 57.8% the corresponding period of 2024.
The real estate sector, which has four listed entities, saw 11.06% year-on-year increase in net earnings to QR546.08mn in Q1-2026 against as high as 18.98% the previous-year period. The sector constituted 4.31% of the overall net profitability in the review period compared to 3.71% in January-March 2025.
The insurance sector, which has seven listed constituents, reported a 7.52% year-on-year growth in net profit to QR441.12mn compared to 10.91% jump in the comparable period of 2025. The sector contributed 3.45% of the overall net profits of the listed companies in the review period against 3.1% in Q1-2025.
However, the telecom sector, which has two listed constituents, saw a 7.51% surge in total net profit to QR1.21bn in January-March 2026 compared to a 5.58% increase the year-ago period. The sector contributed 9.48% of the overall net profits in the review period compared to 8.48% in January-March 2025.
Gulf Times
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