Fauji Cement Posts Solid Profit Growth in 9 Months Despite 14% Quarterly Hit
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Fauji Cement Company Limited (FCCL) announced its financial results for 9MFY26, posting a profit of Rs. 10.8 billion (EPS = Rs. 4.39), compared to Rs. 9.4 billion (EPS = Rs. 3.84) in the same period last year (9MFY25), reflecting a 15 percent year-on-year (YoY) increase.
On a quarterly basis, the company continued to show steady operational performance supported by higher dispatches, while margins remained broadly stable.
Still, the quarter-on-quarter (QoQ) statistic showed a 14 percent drop. The 3Q PAT arrived at Rs. 3.45 billion, up 62 percent YoY.
During 9MFY26, net sales rose to Rs. 69.8 billion, up 4 percent YoY. According to Arif Habib Limited, this growth was mainly driven by a 9 percent increase in dispatches, although overall topline expansion remained modest due to a 6 percent decline in retention prices.
Gross margins remained stable at 34 percent, largely in line with the same period last year.
On the cost side, selling and distribution expenses increased by 7 percent YoY to Rs. 2.4 billion, primarily due to higher dispatch volumes.
Administrative expenses also rose by 16 percent to Rs. 1.4 billion. However, the company benefited from a significant decline in finance costs, which fell by 56 percent YoY to Rs. 1.7 billion, supported by lower interest rates.
In addition, higher cash balances contributed to stronger finance income, which increased to Rs. 1.5 billion compared to Rs. 0.7 billion in 9MFY25.
The effective tax rate remained unchanged at 38 percent during the period.
The company’s liquidity position improved notably, with cash and short-term investments rising to Rs. 14.4 billion in 3QFY26, compared to Rs. 7.6 billion in 3QFY25. A
t the same time, total debt declined significantly to Rs. 30 billion, down from Rs. 40.8 billion in the corresponding period last year and Rs. 41 billion on a quarter-on-quarter basis.
Overall, FCCL maintained a stronger balance sheet position alongside stable operational performance.
AHL recommends to BUY the FCCL stock, with a December 2026 target price of Rs. 72 per share. The stock is currently trading at forward P/E multiples of 8.8x for FY26e and 6.6x for FY27e.
