Fauji Cement Company Limited (FCCL) reported a profit of Rs. 10.8 billion for 9MFY26, translating into earnings per share (EPS) of Rs. 4.39. This reflects a 15% year-on-year increase compared to Rs. 9.4 billion (EPS: Rs. 3.84) in the same period last year. The company maintained steady operational momentum during the period, supported by higher dispatches and broadly stable margins.

Net sales increased to Rs. 69.8 billion, up 4% year-on-year, driven primarily by a 9% rise in dispatch volumes. However, overall revenue growth remained moderate due to a 6% decline in retention prices. Despite this, gross margins were stable at 34%, in line with last year’s level.

On the cost front, selling and distribution expenses rose by 7% to Rs. 2.4 billion, reflecting higher volumes, while administrative expenses increased 16% to Rs. 1.4 billion. The company, however, benefited significantly from lower borrowing costs, as finance charges dropped sharply by 56% to Rs. 1.7 billion due to reduced interest rates. Supporting this, higher cash balances boosted finance income, which climbed to Rs. 1.5 billion compared to Rs. 0.7 billion in the corresponding period last year. The effective tax rate remained unchanged at 38%.

FCCL also showed a notable improvement in its financial position, with cash and short-term investments rising to Rs. 14.4 billion in 3QFY26, compared to Rs. 7.6 billion in 3QFY25. Meanwhile, total debt declined significantly to Rs. 30 billion from Rs. 40.8 billion last year and Rs. 41 billion on a quarter-on-quarter basis, reflecting strong deleveraging trends.

Overall, the company delivered stable operational performance alongside a much stronger balance sheet. FCCL maintains a BUY stance 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.