Fauji Cement Company Limited (PSX: FCCL) has reported its highest-ever profit after tax of Rs. 16.2 billion for FY26, marking a significant improvement in its financial performance.
According to a report by Arif Habib Limited, the company’s FY26 profit represents a strong 10-year compound annual growth rate (CAGR) of 22 percent.
The company also announced a final cash dividend of Rs. 1.50 per share for FY26.
Fauji Cement posted earnings of Rs. 5.40 billion, translating into earnings per share (EPS) of Rs. 2.20 in the fourth quarter of FY26. Quarterly earnings increased 38 percent year-on-year and 56 percent quarter-on-quarter, exceeding market expectations.
The stronger-than-expected result was largely attributed to a significantly lower effective tax rate, which stood at 22.8 percent in 4QFY26, compared with 42.4 percent in 3QFY26 and 38 percent in 4QFY25.
Net revenue increased 10 percent year-on-year and 7 percent quarter-on-quarter to Rs. 23.90 billion during 4QFY26.
The growth was primarily supported by higher domestic cement dispatches, which increased 15 percent year-on-year to 1.35 million tonnes.
For the full financial year, Fauji Cement’s sales rose 5 percent year-on-year to Rs. 93.69 billion.
The company’s gross margin stood at 37.6 percent in 4QFY26, improving from 35.7 percent in the previous quarter, though it remained below the 39.1 percent recorded in 4QFY25.
Fauji Cement also benefited from lower financing expenses. Finance costs declined 18 percent year-on-year and 9 percent quarter-on-quarter to Rs. 931 million in 4QFY26.
For FY26, finance costs fell 28 percent year-on-year to Rs. 4.1 billion, mainly due to lower interest rates and reduced debt levels.
Meanwhile, distribution and administrative expenses increased 15 percent year-on-year to Rs. 1.29 billion during the fourth quarter. Full-year distribution and administrative expenses rose 11 percent to Rs. 5.2 billion.
Other income declined slightly by 2 percent year-on-year to Rs. 492 million in 4QFY26. However, on a full-year basis, other income increased 42 percent to Rs. 2.5 billion.
Alongside its financial results, Fauji Cement’s board authorized management to explore the potential merger of Attock Cement Pakistan Limited (ACPL) into Fauji Cement.
Management will assess the proposed transaction and present its recommendations to the board.
The potential merger could become a major strategic development for Fauji Cement, potentially strengthening its operational scale and market position in Pakistan’s cement industry.
