Fauji Fertilizer Reports Rs. 41.8 Billion Profit in First Half of 2026
Fauji Fertilizer Company Limited (PSX: FFC) has announced a strong financial performance for the first half of calendar year 2026, posting a net profit of Rs. 41.8 billion, with earnings per share (EPS) of Rs. 29.10.
During the second quarter of 2026, the company recorded a net profit of Rs. 24.4 billion (EPS: Rs. 16.93), reflecting a 39% year-on-year increase. FFC also declared a cash dividend of Rs. 14.50 per share, up from Rs. 8.50 per share in the previous quarter.
Sales Growth Driven by Higher Urea Demand
FFC’s quarterly net sales increased 14% year-on-year to Rs. 104.3 billion, supported by stronger fertilizer demand. Sales of prilled urea rose by 42%, while granular urea volumes increased by 17%.
According to market analysis, demand for Sona DAP declined due to higher DAP prices, partially offsetting the gains in urea sales. The company’s average urea market share also improved, reaching 55% in June 2026, compared to 47% during the same period last year.
Improved Margins Support Earnings
FFC increased the price of Sona urea by Rs. 100 per bag in April after ending promotional discounts.
The company also benefited from stronger fertilizer margins, with DAP-phosphoric acid margins rising significantly during the quarter. Higher international DAP prices further contributed to improved profitability.
FFC reported a gross margin of 33.1% for the second quarter, compared with 30.6% in the previous quarter.
Higher Investment Income
Other income climbed to Rs. 17.6 billion, supported by dividend income and improved returns from investments across several businesses.
Finance Costs Increase
Finance costs rose 24% year-on-year to Rs. 2.1 billion, mainly due to higher borrowings used to support the company’s investment activities.
The latest financial results reflect continued growth in FFC’s core fertilizer business, supported by higher sales volumes, improved margins, and stronger investment income during the first half of 2026.
