Fauji Cement Company Limited (FCCL) announced a profit after tax (PAT) of Rs. 3.3 billion for the first quarter of fiscal year 2026. This represents a modest increase from Rs. 3.2 billion in the same period last year. The company’s earnings per share (EPS) rose to Rs. 1.34 from Rs. 1.32 in 1QFY25.
The company reported net revenue of Rs. 23.4 billion, up 2% year-on-year. This growth was fueled by a 6% rise in domestic cement dispatches and a significant 62% increase in exports. Domestic sales reached 1.24 million tons, while export sales totaled 0.27 million tons.
Despite higher revenue, gross margins declined to 31.5% from 34.3%, mainly due to lower retention prices. Selling and distribution expenses rose by 5%, and administrative costs increased 21% to Rs. 500 million.
On the positive side, finance costs fell sharply by 51% to Rs. 668 million, benefiting from reduced borrowings and lower interest rates. The effective tax rate for the quarter was 37.9%.
Fauji Cement also strengthened its cash and short-term investments, which increased to Rs. 19 billion, compared to Rs. 11.9 billion in the previous quarter. Analysts at Arif Habib Ltd have maintained a “Buy” rating on FCCL shares, with a target price of Rs. 72 per share by June 2026. The stock trades at a forward P/E ratio of 7.9x for FY26.
The company’s performance reflects steady growth in both domestic and international markets. Its strong cash position, export growth, and effective cost management helped offset pressures from declining gross margins.
In other related news also read Fauji Cement Reports Profit of 6.96 billion Rupees in 9M FY23
Fauji Cement continues to focus on expanding production, increasing exports, and strengthening financial stability to maintain its leadership in Pakistan’s cement industry.
