Fauji Cement Company Limited Posts Rs. 3.3 Billion Profit in 1QFY26

Fauji Cement Company Limited (FCCL) has announced a profit after tax (PAT) of Rs. 3.3 billion for the first quarter of the fiscal year 2026, according to its latest financial results released on Monday. This marks a slight year-on-year increase from Rs. 3.2 billion reported in the same period last year. Earnings per share (EPS) for the quarter stood at Rs. 1.34, up from Rs. 1.32 in 1QFY25. The company’s net revenue rose by 2% year-on-year to Rs. 23.4 billion, driven by a 6% increase in domestic cement dispatches and a significant 62% jump in export dispatches. Domestic sales reached 1.24 million tons, while exports stood at 0.27 million tons for the quarter, according to Arif Habib Ltd. Despite the growth in revenue, FCCL’s gross margins declined to 31.5% from 34.3% a year earlier, mainly due to lower retention prices. However, the impact was partially offset by higher domestic sales volumes. Selling and distribution expenses increased by 5% year-on-year, while administrative expenses rose by 21% to Rs. 500 million. Finance costs saw a notable decline, dropping 51% year-on-year to Rs. 668 million, thanks to lower interest rates and reduced borrowings. The company reported an effective tax rate of 37.9% for the quarter. FCCL’s cash and short-term investment position improved significantly, reaching Rs. 19 billion at the end of the quarter, up from Rs. 11.9 billion in the previous quarter. Analysts at Arif Habib Limited have maintained a “Buy” rating on FCCL, with a target price of Rs. 72 per share by June 2026. The stock is currently trading at a forward price-to-earnings ratio of 7.9 times for FY26.