Fauji Fertilizer Company Limited (PSX: FFC) reported a net profit of Rs41.8 billion for the first half of calendar year 2026 (H1 CY2026), translating into earnings per share (EPS) of Rs29.10, driven by higher fertilizer sales, improved margins, and strong investment income.
For the second quarter of CY2026, the company posted a net profit of Rs24.4 billion (EPS: Rs16.93), marking a 39 percent year-on-year (YoY) increase. The company’s board also announced a cash dividend of Rs14.50 per share, up from Rs8.50 per share declared in the previous quarter.
Quarterly net sales increased 14 percent YoY to Rs104.3 billion, supported by a 42 percent rise in prilled urea sales and a 17 percent increase in granular urea volumes. However, the growth was partially offset by a 35 percent decline in Sona DAP sales, reflecting weaker demand amid elevated DAP prices.
According to Arif Habib Limited, FFC’s average urea market share climbed to 55 percent in June 2026, compared with 47 percent in the same month last year, benefiting from relatively weaker sales by EFERT.
The company also raised the price of Sona Urea by Rs100 per bag in April after withdrawing promotional discounts. Meanwhile, margins on DAP-phosphoric acid expanded significantly to $279 per ton, compared with $96 per ton in the previous quarter. A 26 percent quarter-on-quarter increase in international DAP prices further supported earnings.
FFC reported a gross margin of 33.1 percent during the second quarter, compared with 30.6 percent in the previous quarter and 33.7 percent in the corresponding period last year.
Other income surged to Rs17.6 billion, driven by higher returns on investments and dividend income. The company received Rs4.4 billion from Askari Bank Limited (AKBL), while Rs11.3 billion was generated from investments in TEL, FPCL, power assets, and PMP.
Finance costs rose 24 percent YoY to Rs2.1 billion, as total borrowings increased to Rs104 billion from Rs61 billion a year earlier. The increase was primarily attributed to financing investments in Pakistan International Airlines (PIA) and Pakistan Education Foundation (PEF).
