Fauji Cement Delivers Solid Growth in FY2026 as Profit Climbs 21%

Fauji Cement Company Limited (FCCL) has reported a strong financial performance for the year ended June 30, 2026, with higher cement dispatches, improved revenue and effective cost management helping the company lift its annual profit by more than one-fifth.

According to the company’s financial results, Fauji Cement recorded a profit after tax of Rs16.18 billion in FY2026, compared with Rs13.33 billion in the previous year, representing an increase of around 21%. Earnings per share also improved to Rs6.60, from Rs5.43 a year earlier.

Cement Dispatches and Revenue Grow

The company’s performance was supported by stronger cement volumes during the year. Fauji Cement’s dispatches increased by 6% year-on-year to 5.7 million tons, compared with 5.4 million tons in FY2025.

This improvement in volumes was accompanied by a 5% increase in net revenue, which reached Rs93.69 billion, compared with Rs88.96 billion in the previous year.

The company maintained a gross profit margin of 35%, reflecting the impact of several cost-optimization measures. Fauji Cement said management increased the use of local coal and multiple alternative fuels, expanded its own production of paper bags, enhanced in-house power generation and benefited from the early repayment of loans.

These measures helped the company protect profitability despite the broader cost pressures faced by the cement sector.

Finance Costs Come Down

Another positive development was the reduction in the company’s net finance cost.

Fauji Cement reported a net finance cost of approximately Rs2.38 billion in FY2026, significantly lower than Rs4.70 billion in FY2025. The reduction helped support the improvement in profit before tax, which rose to Rs24.52 billion from Rs21.53 billion a year earlier.

The company’s cash-flow position also remained healthy. Net cash generated from operating activities increased to around Rs26.93 billion, compared with Rs22.99 billion in FY2025.

Shareholders to Receive Rs1.50 Final Dividend

Fauji Cement’s board has recommended a final cash dividend of Rs1.50 per ordinary share, equivalent to 15% for the year ended June 30, 2026. No bonus shares or right shares were recommended.

The company has also announced that its 34th Annual General Meeting will be held on September 28, 2026, in Islamabad.

Attock Cement Merger Under Evaluation

In a potentially significant development, Fauji Cement’s board has authorized management to explore and evaluate the feasibility of a potential merger of Attock Cement Pakistan Limited with Fauji Cement.

The management will assess the proposal and present its recommendations to the board for consideration. At this stage, the announcement indicates that the proposal is under evaluation rather than confirming that a merger has been finalized.

Outlook

Fauji Cement enters FY2027 from a stronger position, having combined higher dispatch volumes with cost efficiencies and lower financing expenses. The company’s ability to maintain margins while growing volumes will remain important for its future earnings performance.

For investors, the FY2026 results highlight three key developments: higher cement volumes, stronger profitability and improved financial efficiency. The proposed Rs1.50 per-share dividend adds another positive element, while the potential Attock Cement merger could become an important strategic development if the evaluation progresses further.

Overall, Fauji Cement’s FY2026 results point to a year of solid operational and financial progress, with the company ending the year with stronger earnings, improved cash generation and a number of strategic opportunities under consideration.