Fatima Fertilizer Company Limited reported a significant decline in profitability during the first quarter ended March 31, 2026, with its standalone profit after tax falling to Rs4.19 billion, compared with Rs8.07 billion in the same period last year.
According to the company’s financial results, sales declined to Rs27.93 billion during the quarter from Rs42.19 billion a year earlier. This translated into a gross profit of Rs13.04 billion, down from Rs18.54 billion in the corresponding period of 2025.
The company’s operating performance also weakened, with the amount remaining after distribution and administrative expenses falling to Rs7.85 billion from Rs13.71 billion. Finance costs, however, declined to Rs1.63 billion from Rs1.84 billion, while other operating expenses stood at Rs661 million.
Fatima Fertilizer recorded Rs1.35 billion in other income, compared with Rs2.31 billion a year earlier. As a result, profit before tax fell to Rs6.91 billion, compared with Rs13.14 billion in the same quarter last year.
After taxation of Rs2.72 billion, the company posted a quarterly profit of Rs4.19 billion, translating into earnings per share of Rs1.99, down sharply from Rs3.84 in the same period of 2025.
The consolidated results showed a similar trend. Fatima Fertilizer’s consolidated profit after tax dropped to Rs3.24 billion in the quarter from Rs8.37 billion a year earlier, while consolidated earnings per share declined to Rs1.54 from Rs3.99.
The company’s balance sheet remained substantial, with total assets of around Rs277.75 billion on a standalone basis at March 31, 2026. The board, in its meeting held on April 24, 2026, recommended no cash dividend, bonus shares or right shares for the quarter.
Overall, Fatima Fertilizer’s first-quarter results point to a challenging start to the year, primarily reflected in lower sales and weaker gross and operating profitability. The company will need to navigate these pressures in the coming quarters to rebuild earnings momentum.
