Fatima Fertilizer Company Limited has reported a notable improvement in its consolidated financial performance for the six months ended June 30, 2026, with profit after tax increasing to Rs20.44 billion, compared with Rs16.93 billion in the same period last year.
The company disclosed its half-year financial results on August 19, 2026. According to the filing submitted to the Pakistan Stock Exchange, the board recommended no cash dividend, bonus shares, right shares or other corporate action for the period.
Sales and gross profit improve
Fatima Fertilizer’s consolidated sales reached Rs130.61 billion during the first half of 2026, up from Rs115.90 billion a year earlier. This represents an increase of around 13%.
The stronger sales performance also supported gross profit, which climbed to Rs50.52 billion from Rs41.94 billion in the corresponding period of 2025.
However, operating expenses also increased. Selling and distribution expenses rose to approximately Rs9.28 billion, while administrative expenses reached Rs6.58 billion during the six-month period.
Despite the higher expenses, the company’s operating results remained stronger than the previous year.
Profit climbs to Rs20.44 billion
Fatima Fertilizer posted consolidated profit before tax of Rs33.01 billion for the first six months of 2026, compared with Rs27.57 billion in the same period of 2025.
After taxation of approximately Rs12.57 billion, profit for the period stood at Rs20.44 billion, compared with Rs16.93 billion previously.
On a quarterly basis, the improvement was even more visible. Profit for the three months ended June 30, 2026 reached Rs17.20 billion, compared with Rs8.56 billion in the same quarter last year.
The company’s consolidated earnings per share (EPS) for the six-month period increased to Rs9.73, from Rs8.06 a year earlier.
Standalone results show a different picture
While the consolidated numbers were positive, Fatima Fertilizer’s standalone results were comparatively weaker.
Standalone sales declined to Rs75.77 billion in the first half of 2026 from Rs91.12 billion in the same period of 2025. Gross profit consequently fell to Rs35.07 billion, compared with Rs37.47 billion previously.
Standalone profit after tax dropped to Rs13.23 billion, against Rs17.25 billion in the corresponding period last year. EPS also declined from Rs8.22 to Rs6.30.
The contrasting consolidated and standalone performances indicate that the improvement at the group level was supported by the company’s broader consolidated operations rather than by standalone performance alone.
Cash position remains an area to watch
The consolidated cash flow statement also shows that the company generated Rs6.14 billion in net cash from investing activities during the first half of 2026. At the same time, net cash used in financing activities stood at around Rs32.71 billion.
Cash and cash equivalents at the end of the period were reported at approximately negative Rs31.94 billion, compared with negative Rs8.80 billion at the end of June 2025. The figures include running finance and running musharakah balances.
No dividend announced
For the half year ended June 30, 2026, Fatima Fertilizer’s board recommended no cash dividend. The filing also stated that no bonus shares, right shares or other corporate action were recommended.
Overall, Fatima Fertilizer’s first-half consolidated results present a mixed but encouraging picture. Higher sales and stronger consolidated profitability helped lift earnings significantly, while the decline in standalone profit and the movement in cash balances remain important factors for investors to monitor going forward.
