FCCL profit rises 15% in 9MFY26

April 24, 2026 (MLN):  Fauji Cement Company Limited (PSX: FCCL) reported a solid 15% increase in its net profit for the nine months ended March 31, 2026, reaching Rs10.78bn compared to Rs9.41bn in the corresponding period last year.

Reflecting this healthy bottom-line growth, the company's earnings per share (EPS) expanded to Rs4.39 from Rs3.84 in 9MFY25, alongside an improvement in its Net Profit Ratio from 14% to 15%.

Beyond the strong financial metrics, the period was marked by a monumental strategic maneuver.

Fauji Cement, in collaboration with Kot Addu Power Company Limited (KAPCO), signed a Share Purchase Agreement to acquire an 84.06% stake in Attock Cement Pakistan Limited from Pharaon Investment Group Limited Holding S.A.L. Solidifying this expansion, FCCL subsequently made a public offer on April 4, 2026, for the acquisition of an additional 7.97% of shares.

On the operational front, FCCL's net revenue saw a 4% year-on-year increase, rising to Rs69.78bn from Rs67.15bn.

This top-line growth was driven by improved retention prices and a 9% year-on-year jump in local dispatches, which reached 4.35 million tons compared to 3.99 million tons in the same period last year.

The robust domestic volume successfully offset a decline in exports, which were hampered by Afghan border-related challenges.

The company's gross profit margin stood strong at 34%, with absolute gross profit edging up 3% to Rs23.73bn.

Management attributed this solid margin to higher volumetric sales, better retention, and the successful realization of cost optimization initiatives.

However, inflationary pressures were visible across overheads. Administrative expenses rose by 16% to Rs1.46bn, while selling and distribution expenses increased by 7% to Rs2.40bn. Because of these rising operational costs, the operating profit remained largely stagnant, inching up by less than 1% to Rs19.20bn.

The true financial catalyst for FCCL’s double-digit earnings growth occurred below the operating line. The company successfully slashed its gross finance costs by 30% to Rs3.24bn.

Even more impressively, finance income doubled, jumping 100% to Rs1.55bn. Together, these factors caused the net finance cost to plummet by a massive 56%, dropping to just Rs1.69bn compared to a heavy Rs3.87bn burden last year.

This significant relief in net financial charges bypassed the stagnant operational growth, propelling the profit before taxation up by 15% to Rs17.51bn.

Even after absorbing a 17% higher income tax expense of Rs6.74bn, Fauji Cement successfully secured its 15% leap in the final net profit.

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