Fauji Fertilizer Company Limited (FFC) reported a Rs. 41.8 billion net profit for first half of 2026.

It also posted a net profit of Rs. 24.4 billion (EPS: Rs. 16.93) for 2QCY26, up 39 percent year-on-year (YoY). The company also announced a cash dividend of Rs. 14.50 per share, compared with Rs. 8.50 in the previous quarter.

Net sales increased 14 percent YoY to Rs. 104.3 billion, driven by a 42 percent rise in prilled urea sales and a 17 percent increase in granular urea volumes. The growth was partially offset by a 35 percent decline in Sona DAP offtake due to elevated DAP prices. However, the average urea market price climbed to 55 percent in June 2026, up from 47 percent in June 2025, supported by weaker EFERT sales.

The company also raised Sona urea prices by Rs. 100 per bag in April following the complete withdrawal of promotional discounts. In addition, DAP-phosphoric acid margins expanded to $279 per ton, up from $96 per ton in the previous quarter, while a 26 percent QoQ increase in international DAP prices further supported profitability.

Gross margin improved to 33.1 percent in 2QCY26, compared with 30.6 percent in the previous quarter and 33.7 percent in the same period last year.

Other income surged to Rs. 17.6 billion, mainly due to a AKBL dividend of Rs. 1.9 billion and higher investment income. The company earned approximately Rs. 4.4 billion from AKBL, while the remaining Rs. 11.3 billion came primarily from investments in TEL, FPCL, power assets, and PMP, along with higher finance income.

Finance costs rose 24 percent YoY to Rs. 2.1 billion, reflecting higher debt levels as borrowings increased to Rs. 104 billion from Rs. 61 billion a year earlier, mainly to finance the PIA and PEF investments.