Fauji Fertilizer Company Limited (PSX: FFC) posted a net profit of Rs. 41.8 billion (EPS: Rs. 29.1) for the first half of CY2026.
For 2QCY26, the company reported a net profit of Rs. 24.4 billion (EPS: Rs. 16.93), up 39 percent year-on-year (YoY), and announced a cash dividend of Rs. 14.50 per share, compared with Rs. 8.50 in the previous quarter.
Quarterly net sales rose 14 percent YoY to Rs. 104.3 billion, supported by a 42 percent increase in prilled urea sales and a 17 percent rise in granular urea volumes. According to Arif Habib Limited, the growth was partly offset by a 35 percent decline in Sona DAP offtake due to elevated DAP prices. Meanwhile, the average urea market share increased to 55 percent in June 2026, from 47 percent a year earlier, aided by weaker EFERT sales.
FFC also increased Sona urea prices by Rs. 100 per bag in April after withdrawing promotional discounts. In addition, DAP-phosphoric acid margins expanded to $279 per ton from $96 per ton in the previous quarter, while a 26 percent quarter-on-quarter (QoQ) increase in international DAP prices further strengthened profitability.
Gross margin stood at 33.1 percent in 2QCY26, compared with 30.6 percent QoQ and 33.7 percent in the same quarter last year.
Other income surged to Rs. 17.6 billion, supported by a Rs. 1.9 billion dividend from AKBL and higher returns on investments. Around Rs. 4.4 billion came from AKBL, while the remaining Rs. 11.3 billion was generated from investments in TEL, FPCL, power assets, and PMP.
Finance costs increased 24 percent YoY to Rs. 2.1 billion, as borrowings rose to Rs. 104 billion from Rs. 61 billion a year earlier, primarily to fund the company’s investments in PIA and PEF.
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