Fauji Cement Posts Highest-Ever Profit In FY26 After Strong Q4 Earnings

Fauji Cement, a leading Pakistani cement manufacturer, announced its highest-ever net profit after tax of Rs. 16.2 billion for the fiscal year 2026 (FY26). This achievement comes after a remarkable 10-year Compound Annual Growth Rate (CAGR) of 22%, according to Arif Habib Limited. The company's impressive performance was highlighted by a final cash dividend of Rs. 1.50 per share for the fourth quarter of FY26 (4QFY26).

In Q4FY26, the company reported earnings of Rs. 5.40 billion, or earnings per share of Rs. 2.20, marking a substantial 38% increase year-over-year and a 56% jump compared to the previous quarter. The Q4FY26 results exceeded market expectations, mainly due to a lower-than-anticipated effective tax rate of 22.8%, compared to 42.4% in Q3FY26 and 38.0% in 4QFY25.

The company's net revenue grew by 10% year-over-year and 7% quarter-over-quarter to Rs. 23.90 billion in 4QFY26. This increase was primarily driven by higher domestic dispatches, which rose 15% year-over-year to 1.35 million tonnes. For FY26, the total sales expanded by 5% year-over-year to Rs. 93.69 billion. Gross margin improved to 37.6% in Q4FY26 from 35.7% in Q3FY26 and 39.1% in 4QFY25.

However, distribution and administrative expenses increased by 15% year-over-year to Rs. 1.29 billion in 4QFY26, while the full-year costs rose by 11% year-over-year to Rs. 5.2 billion. Other income declined by 2% year-over-year to Rs. 492 million in 4QFY26, but the full-year other income saw a significant boost of 42% year-over-year to Rs.

2.5 billion. Finance costs decreased by 18% year-over-year and 9% quarter-over-quarter to Rs. 931 million in 4QFY26, primarily due to lower interest rates and debt levels. For FY26, finance costs decreased by 28% year-over-year to Rs. 4.1 billion.

In addition to the strong quarterly results, Fauji Cement's board authorized management to explore a potential merger of Attock Cement Pakistan Limited into Fauji Cement. The company will present its recommendations to the board for consideration.