PACRA maintains long term entity rating of Fatima Fertilizer at AA+

July 27, 2026 (MLN): The Pakistan Credit Rating Agency (PACRA) has maintained the entity ratings of Fatima Fertilizer Company Limited (PSX:FATIMA), keeping the long-term rating at AA+ and short-term rating at A1+, with a stable outlook, unchanged from the previous review conducted a year earlier.

PACRA reaffirmed the ratings on the back of the company's strong business fundamentals and its demonstrated capacity to adapt to shifting industry conditions.

FATIMA holds a prominent position in Pakistan's oligopolistic fertilizer sector, backed by a diversified product portfolio and a well-entrenched operational base.

According to PACRA, the company is reinforcing its competitive standing through the integration of AI-driven solutions and a prudent diversification strategy involving investments across multiple new sectors, aimed at supporting long-term sustainable growth.

On a standalone basis, FATIMA posted revenue of Rs27.92bn in 1QCY26, down from Rs42.19bn in 1QCY25, following the carve-out of the Multan Plant into its wholly owned subsidiary, Pakarab Fertilizers Limited, effective January 2025.

While inflationary pressures pushed operating expenses higher, this was largely offset by the ongoing monetary easing cycle.

A healthy income stream from the company's strategic investment portfolio and equity market holdings through Fatima Capital Limited also lent meaningful support to profitability. As a result, the company reported profit after tax of Rs4.18bn in 1QCY26, compared with Rs8.0bn in the same period last year.

FATIMA is pursuing a broader diversification strategy through investments in emerging sectors.

As part of its sustainability and funding efforts, the company has partnered with the International Finance Corporation (IFC) to set up a US dollar-denominated revolving liquidity facility. It has also entered the mining and minerals space through an investment in Globacore Minerals alongside Mari Minerals, and stepped into exploration and production (E&P) through its wholly owned subsidiary, Fatima Petroleum Company Limited (FPCL).

FPCL has signed farm-out agreements with Mari Energies, Orient Petroleum Inc., Hycarbex American Energy Inc., and Turkish Petroleum Overseas Company (TPOC), covering four onshore and two offshore exploration blocks.

 Separately, FATIMA is part of the consortium that successfully acquired a majority equity stake in Pakistan International Airlines Corporation Limited (PIACL).

The company has also become the first private-sector entity in Pakistan to adopt the UNDP SDG Impact Framework, working with UNDP to develop an SDG-aligned sustainability framework and publish its inaugural SDG Impact Report.

PACRA noted that these initiatives are collectively expected to diversify FATIMA's earnings streams, strengthen its financial resilience, expand its business footprint, and support long-term growth prospects.

PACRA said the ratings remain contingent on the company's ability to sustain its margins and healthy coverage ratios while maintaining strong financial discipline, adding that realizing synergies from the recent operational restructuring will play a pivotal role going forward.

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