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Fauji Cement Profit surges 21% to Rs16bn in FY26

FCCL Fauji Cement Company Limited
Rs. 57.55 -0.88%

August 11, 2026 (MLN): Fauji Cement Company Limited (PSX: FCCL) recorded a 21% increase in its net profit for the year ended June 30, 2026, with profit for the year climbing to Rs16.18bn from Rs13.33bn in the corresponding period last year.

Showing this healthy bottom-line growth, the company's earnings per share (EPS) expanded to Rs6.60 from Rs5.43 in FY25.

The Board of Directors has declared a final cash dividend of Rs1.50 per share (15%) for the year ended June 30, 2026.

The top-line showed steady growth, with net revenue rising 5% year-on-year to Rs93.69bn from Rs88.96bn in the prior year.

Cost of sales rose at a slightly faster pace of 6% to Rs60.97bn, causing gross profit to expand at a more modest 4% to Rs32.72bn from Rs31.57bn showing mild margin compression at the gross level.

On the expenditure side, selling and distribution expenses rose 10% to Rs3.24bn, administrative expenses increased 14% to Rs1.92bn, and other expenses climbed 16% to Rs1.71bn.

Other income grew 7% to Rs812.54m, providing a partial offset. These combined movements kept operating profit broadly stable, edging up just 2% to Rs26.67bn from Rs26.23bn.

Below the operating line, the picture improved significantly. Finance cost fell sharply by 28% to Rs4.17bn, while finance income surged 67% to Rs1.78bn.

As a result, net finance cost nearly halved, declining 49% to Rs2.38bn from Rs4.70bn a substantial tailwind that meaningfully lifted the pre-tax line.

Additionally, the share of net profit from investment under the equity method contributed Rs237.38m in the current year, with no comparable figure in the prior period.

These combined factors pushed profit before income tax and levy up 14% to Rs24.52bn from Rs21.53bn.

Income tax expense rose modestly by 2% to Rs8.34bn from Rs8.20bn a proportionally far smaller increase than pre-tax profit growth providing an additional amplifying effect that delivered the 21% increase in profit for the year.

STATEMENT OF PROFIT OR LOSS FOR THE YEAR ENDED JUNE 30, 2026 (Rs.000)

Description

2026

2025

Change (%)

Revenue - net

93,690,178

88,956,328

5.32%

Cost of sales

(60,969,007)

(57,384,978)

6.25%

Gross profit

32,721,171

31,571,350

3.64%

Other income

812,544

760,772

6.81%

Selling and distribution expenses

(3,238,844)

(2,935,139)

10.35%

Administrative expenses

(1,917,736)

(1,688,886)

13.55%

Other expenses

(1,710,007)

(1,479,276)

15.60%

Operating profit

26,667,128

26,228,821

1.67%

Finance cost

(4,166,516)

(5,772,132)

-27.82%

Finance income

1,784,839

1,068,831

66.99%

Net finance cost

(2,381,677)

(4,703,301)

-49.36%

Share of net profit of investment under equity method

237,378

Profit before income tax and levy

24,522,829

21,525,520

13.92%

Income tax expense

(8,339,917)

(8,199,318)

1.71%

Profit for the year

16,182,912

13,326,202

21.44%

Basic and diluted earnings per share (Rs.)

6.60

5.43

21.55%