Karachi: Fatima Fertilizer Company Ltd. (FATIMA) reported a significant increase in its financial performance for the second quarter of the calendar year 2026, with consolidated earnings reaching PkR17.2 billion, marking a twofold increase from the previous year. This surge in profitability was primarily driven by higher-than-expected other income. Despite the robust financial results, the company did not declare any dividends.

According to AKD Securities Limited, Fatima Fertilizer's revenue increased by 31% year-on-year, amounting to PkR83.8 billion in 2QCY26, compared to PkR63.9 billion in the same period last year. This growth was largely attributed to an 85% increase in Urea offtakes and a 27% rise in CAN offtakes, although it was somewhat offset by a 6% decline in NP offtakes. The company's gross margins improved to 38.2% from 32.8% in the same period last year, owing to higher offtakes and a greater mix of nitrogenous nutrients.

Operating expenses also saw an increase of 27% year-on-year, rising to PkR8.6 billion, driven by higher offtakes and increased fuel costs during the quarter. Despite these rising costs, Fatima Fertilizer's financial results exceeded expectations, showcasing the company's ability to leverage higher revenue and income to enhance profitability.