FCCL posts marginal profit growth in 1HFY26

February 25, 2026 (MLN): Fauji Cement Company Limited (PSX:FCCL) reported a net profit of Rs7.32bn for the half year ended December 31, 2025, a 1% increase from the Rs7.27bn profit recorded in the same period last year.

The company's earnings per share rose to Rs2.98 from Rs2.96 in the corresponding period of the previous year.

The company's net revenue declined slightly by 1% year-on-year to Rs47.35bn from Rs47.84bn.

Cost of sales increased 2% to Rs31.63bn from Rs31.06bn, resulting in a gross profit of Rs15.73bn, down 6% from Rs16.79bn in the prior period.

The gross profit margin contracted to 33.2% from 35.1% in H1 FY2025, reflecting higher production costs relative to revenue generation.

 Despite increase in local coal prices due to closure of Afghan border, the company managed to keep costs under control (2% increase over SPLY) by enhancing own power generation, using multiple type of alternative fuels, meeting almost 100% packing bags requirement through self-production and optimizing fixed cost

The net profit margin stood at 15.5% compared to 15.2% in the same period last year, showing bottom-line resilience despite top-line and gross margin pressures.

Administrative expenses increased 19% to Rs1.01bn from Rs848.6m, while selling and distribution expenses rose 14% to Rs1.60bn from Rs1.40bn.

Operating profit fell 10% to Rs12.68bn from Rs14.11bn in H1 FY2025, primarily due to the lower gross profit and higher operating expenses.

Other income decreased 6% to Rs365.6m from Rs387m, while other expenses slightly declined 1% to Rs804m from Rs812m.

Finance costs (gross) decreased 26% to Rs2.21bn from Rs3bn, and finance income surged 76% to Rs1.05bn. This resulted in the net finance cost plummeting by 52% to Rs1.16bn from Rs2.41bn, significantly alleviating pressure on the bottom line.

Profit before taxation reached Rs11.51bn, down 2% from Rs11.70bn in the prior period.

The company recorded an income tax expense of Rs4.20bn, down 5% from Rs4.43bn in the corresponding period last year.

The massive 52% reduction in net finance costs was the key driver that allowed the company to post a marginal 1% profit growth at the net level despite the 10% drop in operating profit.

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