Fauji Fertilizer Company Limited (FFC) reported a net profit of Rs. 64.2 billion for the first nine months of calendar year 2026, up 11 percent from Rs. 57.6 billion in the corresponding period last year.
The company declared a dividend of Rs. 18.5 per share for the third quarter of 2026, compared with Rs. 14.5 per share in the previous quarter. The payout represents 119 percent of quarterly earnings.
The latest dividend is FFC’s second-highest quarterly payout, behind the Rs. 21 per share distributed in December 2024. That payment covered two quarters following the merger of FFC and Fauji Fertilizer Bin Qasim Limited (FFBL).
FFC recorded a net profit of Rs. 22.3 billion in the third quarter, with earnings per share of Rs. 15.51, down 8 percent from the previous quarter. Earnings per share for the first nine months increased to Rs. 44.59 from Rs. 40.50 a year earlier.
Third-quarter net sales remained broadly stable at Rs. 127.7 billion. However, prilled urea volumes declined 8.9 percent year-on-year, while granular urea volumes fell 10.9 percent. Sona DAP sales dropped 22.3 percent compared with the same quarter last year.
Like Engro Fertilizers, FFC last raised its urea prices in April 2026.
DAP-phosphoric acid margins narrowed to $125 per ton in the third quarter from $238 per ton in the previous quarter. Phosphoric acid prices increased 29 percent quarter-on-quarter, outpacing the 7 percent rise in DAP prices and putting pressure on gross margins.
Despite this, FFC’s gross margin improved to 33.6 percent from 33.1 percent in the previous quarter and 30.8 percent in the third quarter of 2025. The improvement was likely supported by inventory gains amid higher DAP prices, lower-cost phosphoric acid stocks and better urea prices.
Other income reached Rs. 9.3 billion during the quarter. This included expected dividends of Rs. 2 per share from AKBL and Rs. 1.5 per share from FCCL, as well as investment income of around Rs. 4.3 billion. Additional dividend income, potentially from power sector investments, may also have contributed.
Finance costs rose 93 percent year-on-year to Rs. 3.3 billion in the third quarter. The increase came alongside a rise in borrowings to Rs. 102 billion from Rs. 52 billion a year earlier, primarily to finance investments in PIA and PEF.
