FCL targets double-digit export growth, higher lights segment contribution

November 07, 2025 (MLN): Fast Cables Limited (PSX: FCL), Pakistan’s leading manufacturer of electrical cables, is gearing up for renewed growth momentum in FY26 as it focuses on capacity expansion, operational efficiency, and export market penetration.

The management during its corporate briefing session remains upbeat about a recovery in public sector projects and anticipates a strong contribution from the lights segment, which is expected to account for 10–15% of total revenues over the next few years.

Management also expressed optimism regarding the planned privatization of electricity distribution companies (DISCOs), viewing it as a key catalyst for infrastructure modernization and long-term demand growth in the transmission and distribution (T&D) segment.

The company views the privatization of DISCOs as a major opportunity, given Pakistan’s T&D line losses which are far greater compared to Colombo’s 4%, signaling vast potential for system upgrades and efficiencies.

Furthermore, the company is committed in expanding its fire resistance cables, which they are locally manufacturing and is focused on R&D.

On the raw materials front, management remains cautious as global copper prices are forecast to stay elevated due to rising demand from electric vehicles, renewable energy, and industrial sectors.

The company’s management added that potential benefits from the Reko Diq project would only materialize if local copper processing facilities are established, otherwise imports would continue at international benchmark prices.

Internationally, FCL aims to strengthen its presence across regional market and sees exports as a high-margin growth area, with management projecting double-digit growth ahead.

Trial runs for the new manufacturing unit are expected soon. The new facility will focus on process improvement, debottlenecking, and scaling production to meet increasing demand a.

During FY25, FCL reported consolidated revenues of Rs31.9 billion, reflecting an 11% year-on-year decline from Rs36bn last year, amid subdued domestic demand, slower execution of public sector projects, and increased competition .

Despite maintaining market leadership, profit margins came under pressure due to higher input costs particularly copper and aluminum, which rose by approximately 10% YoY and limited pricing flexibility.

Net profit stood at Rs1.27 bn, down 33% from Rs1.88bn YoY, translating to earnings per share (EPS) of RS 2.03 versus Rs3.68 in the prior year.

However, the current fiscal year began on a stronger footing. In 1QFY26, revenue grew 20% YoY to Rs8.64bn, Net profit surged 87% YoY to Rs388m, taking EPS to Rs0.62, compared with Rs0.33 in the same period last year.

Segment-wise performance in FY25 reflected mixed trends. The trade (+36% YoY) and lights (+53% YoY) categories delivered robust growth, while the industrial segment rose 12% YoY. Conversely, sales to institutions (-45% YoY), housing (-54% YoY), and exports (-22% YoY) declined, primarily due to muted tender activity and weaker demand in the construction and government sectors.

Despite these challenges, management emphasized that FCL’s market share remained intact in the formal sector.

FCL expects a gradual recovery in institutional and housing demand during FY26, supported by an improving macroeconomic environment, the resumption of public sector development spending, and continued investment in transmission infrastructure.

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