FATIMA 1HCY26 profit jumps 21%

August 20, 2026 (MLN): Fatima Fertilizer Company Limited (PSX: FATIMA) reported a 21% increase in its consolidated net profit for the half-year ended June 30, 2026 (1HCY26), recording Rs20.44bn compared to Rs16.93bn in the corresponding period last year.

Reflecting this solid bottom-line expansion, the company's basic and diluted earnings per share (EPS) improved to Rs9.73 for the half-year, up from Rs8.06 in 1HCY25.

The primary driver behind the financial performance was a strong top-line expansion combined with improved gross margins.

Sales revenue surged 13% year-on-year to reach Rs130.61bn, up from Rs115.90bn in 1HCY25.

Although cost of sales rose by 8% to Rs80.09bn, top-line growth outpaced production expenses, enabling gross profit to expand 20% to Rs50.52bn compared to Rs41.94bn in the prior year.

On the operational front, administrative and distribution costs expanded to support market outreach.

Selling and distribution expenses rose 13% to Rs9.28bn, while administrative expenses grew 27% to Rs6.58bn.

Despite higher operating overheads, strong gross margin growth pushed core operating profit up by 21% to Rs34.66bn.

Below the operating line, FATIMA benefited from debt servicing relief as finance costs dropped 9% to Rs3.54bn (down from Rs3.91bn).

Other operating expenses also fell 5% to Rs2.67bn.

Although "other income" declined 18% to Rs4.67bn and the share of loss from associates stood at Rs120.88m, the core operating momentum drove profit before tax up 20% to Rs33.01bn.

The company absorbed an 18% higher taxation burden of Rs12.57bn for the six-month period (up from Rs10.64bn in 1HCY25).

Supported by top-line growth and lower finance costs, Fatima Fertilizer Company Limited securely closed the half-year with its net profit reaching Rs20.44bn.

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