Fauji Fertilizer Rewards Shareholders After Exceptional 9-Month Results

Fauji Fertilizer Firm Limited (FFC) noted a net profit of Rs.

Key points

• While Sona DAP volumes declined 22.3 percent, prilled and granular urea volumes fell 8.9 percent and 10.9 percent year over year, respectively.
• 18.5 per share for 3QCY26, up from Rs.
• 9.3 billion in 3QCY26, including projected dividends of Rs.
• Finance costs rose 93 percent year over year to Rs.

Fauji Fertilizer Firm Limited (FFC) noted 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 same period last year.

FFC confirmed a dividend of Rs. 18.5 per share for 3QCY26, up from Rs. 14.5 per share in the previous quarter, translating into a payout ratio of 119 percent.

After Rs, the payout is the company's second-highest quarterly dividend. 21 per share in December 2024. It included two quarters' dividends after the FFC-FFBL merger. DAP Shortfall Looms for Rabi Season Despite Healthy Urea Stocks.

In the third quarter, the firm posted a net profit of Rs. 22.3 billion, with earnings per share of Rs. 15.51, down 8 percent quarter over quarter. Earnings per share rose to Rs. 44.59 from Rs. 40.50.

Net sales remained broadly stable at Rs. 127.7 billion in 3QCY26. While Sona DAP volumes declined 22.3 percent, prilled and granular urea volumes fell 8.9 percent and 10.9 percent year over year, respectively. Similar to EFERT, FFC last rose urea costs in April 2026.

As a 29 percent quarter over quarter growth in phosphoric acid costs outpaced the 7 percent rise in DAP rates, weighing on gross margins despite elevated spreads, dAP-phosphoric acid margins declined to $125 per ton in 3QCY26 from $238 per ton in the previous quarter. Pakistan Loses Qatar LNG Project.

Gross margins expanded to 33.6 percent in 3QCY26 from 33.1 percent in the previous quarter and 30.8 percent in 3QCY25, probable driven by inventory gains against the backdrop of higher DAP rates, lower-cost phosphoric acid inventories and improved urea costs.

Other income stood at Rs. 9.3 billion in 3QCY26, including projected dividends of Rs. 2 per share from AKBL and Rs. 1.5 per share from FCCL, alongside investment income of around Rs. 4.3 billion. Extra dividend income, probable from power sector investments, may additionally have contributed.

Finance costs rose 93 percent year over year to Rs. 3.3 billion in 3QCY26, reflecting a higher debt load, with borrowings rising to Rs. 102 billion from Rs. 52 billion in the same period last year, primarily to finance PIA and PEF investments. Stay Connected with ProPakistani.

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For now, fauji Fertilizer Rewards Shareholders After Exceptional 9 remains the part of the story worth watching, and further updates are likely as more details are confirmed.