Fauji Cement Co Ltd (FCCL) reported a net profit after tax (NPAT) of PKR4bn for the 2QFY26, a 23 per cent increase QoQ and stable YoY performance. For the 1HFY26, net profit after tax totals PKR7.3bn, remaining flat YoY. The company announced its results on the Pakistan Stock Exchange on 25 February, with IMS Research providing analysis.
Key highlights for 2QFY26 include net sales of PKR23.9bn, unchanged QoQ and in line with expectations. Volume remained stable at 1.5Mt for the quarter, as an 18 per cent increase in domestic sales (1.45Mt) was offset by an 82 per cent decline in exports to 0.05Mt, largely due to the closure of the Afghan border.
Net finance cost decreased by 26 per cent QoQ to PKR 493m, as finance income increased 24 per cent QoQ to PKR581m, driven by a 42 per cent rise in short-term investments. Simultaneously, finance costs fell 13 per cent sequentially to PKR1.1bn, driven by lower interest rates.
FCCL continues to report resilient earnings despite challenges posed by border closures with Afghanistan, which impact exports. The company benefits from a competitive energy mix, with over 50 per cent of its energy sourced from renewable sources. Additionally, the recent reduction in electricity grid tariffs is expected to further lower power costs. The strategic acquisition of ACPL positions FCCL as the third-largest player in the industry, allowing entry into the southern market at a competitive price of US$47/t.
By Abdul Rab Siddiqi, Pakistan
