IMS Research has released its review on Fauji Cement Company Ltd (FCCL), which posted a robust net profit after tax (NPAT) of PKR 5.4bn for the fourth quarter of FY26. This marks a 56 per cent quarter-on-quarter and 38 per cent year-on-year increase, well above the estimated EPS of PKR1.70.
For the full year, FCCL recorded NPAT of PKR16.2bn, reflecting a 21 per cent YoY growth, driven by higher sales and a lower-than-expected effective tax rate. The company also surprised the market by announcing a final cash dividend of PKR1.50 per share, against expectations of no payout.
Key Highlights
- Sales Growth: Net sales rose to PKR23.9bn, up 10 per cent YoY and 7 per cent QoQ, supported by higher retention prices in the North region.
- Margins: Gross margins expanded to 38 per cent, beating expectations due to controlled costs.
- Investments: FCCL booked PKR 237m profit share from its 46 per cent stake in Attock Cement Pakistan Ltd (ACPL). The Board has authorized management to explore a potential merger with ACPL.
- Taxation: Effective tax rate declined to 23 per cent, compared to 38 per cent in the same period last year.
Despite challenges from the Afghan border closure affecting exports, FCCL delivered encouraging revenue growth and margin expansion. The company’s reliance on renewable energy — now more than 50 per cent of its power mix — continues to provide a competitive edge.
Analysts highlight that the potential merger with ACPL would make FCCL the first cement company to operate across three provinces, strengthening its market position and access to the southern market.
By Abdul Rab Siddiqi, Pakistan
