Fauji Cement Company Limited (FCCL) reported a stronger financial performance for the nine months ended March 31, 2026, with profit after tax rising to Rs10.78 billion, compared with Rs9.41 billion in the same period last year.
The company’s latest results point to improved operating performance, supported by higher cement dispatches, better retention and cost-optimization measures.
Revenue increases as cement volumes grow
Fauji Cement recorded net revenue of Rs69.78 billion during the nine-month period, up from Rs67.15 billion a year earlier. The company attributed the increase mainly to higher dispatches and improved retention.
Cement dispatches reached 4.35 million tons, compared with 3.99 million tons in the corresponding period of the previous year, representing a 9% year-on-year increase. However, exports declined during the period due to challenges related to the Afghanistan border.
Profitability improves
The company’s gross profit for the nine months stood at Rs23.73 billion, compared with Rs23.05 billion in the same period last year. The gross profit margin improved to 34%, which Fauji Cement linked to higher volumes, better retention and cost-optimization initiatives.
Operating profit reached Rs19.20 billion, slightly higher than Rs19.06 billion recorded in the comparable period.
A notable improvement came below the operating level, where the company’s finance cost declined to Rs3.24 billion from Rs4.64 billion a year earlier. This helped support the increase in profit before tax, which reached Rs17.51 billion, compared with Rs15.19 billion in the previous year.
As a result, profit after tax increased by around 15% to Rs10.78 billion, from Rs9.41 billion. Earnings per share also improved to Rs4.39, compared with Rs3.84 in the same period last year.
Strong operating cash generation
Fauji Cement also maintained solid cash generation during the period. Net cash generated from operating activities amounted to approximately Rs21.06 billion, compared with Rs17.24 billion in the nine months ended March 2025.
The company generated Rs27.51 billion in cash from operations before payments including taxes and employee-related obligations. At the end of March 2026, cash and cash equivalents stood at approximately Rs2.48 billion, up from Rs1.59 billion a year earlier.
Attock Cement acquisition remains a key development
Alongside its financial performance, Fauji Cement highlighted its move to expand its footprint into Pakistan’s southern cement market.
During the period, Fauji Cement, together with Kot Addu Power Company Limited, entered into a Share Purchase Agreement with Pharaon Investment Group Limited Holding S.A.L. for the acquisition of an 84.06% stake in Attock Cement Pakistan Limited.
Fauji Cement subsequently made a public offer for an additional 7.97% of Attock Cement’s shares on April 4, 2026, in accordance with takeover regulations. The company said the transaction is expected to be completed by the end of April 2026 and aligns with its objective of becoming a leading cement producer by establishing a presence in the southern market.
No cash dividend announced
For the nine-month period, the company’s board recommended no cash dividend, bonus shares or right shares.
Overall, Fauji Cement’s nine-month results show a company benefiting from stronger domestic volumes, improved margins and lower financing costs. With the planned expansion into the southern market through Attock Cement, the company’s strategic position in Pakistan’s cement industry could become even more significant in the periods ahead.
