Karachi: Fauji Cement Company Limited (FCCL) announced a significant increase in its financial performance for the fourth quarter of the fiscal year 2026, with earnings per share (EPS) rising by 56% quarter-on-quarter to Rs2.20. The company reported a net profit of Rs5.40 billion for the quarter, reflecting a 38% year-on-year increase. This culminates in an annual profit of Rs16.2 billion for FY26, marking a 21% rise from the previous year.
According to JS Global, the company's better-than-expected results were primarily due to a lower effective tax rate, which stood at 22.8% in the fourth quarter, significantly down from 42.4% in the preceding quarter and 38.0% in the same period last year. The company's net revenue also saw an increase, rising by 10% year-on-year and 7% quarter-on-quarter to Rs23.90 billion. This growth was driven largely by a 15% year-on-year increase in domestic dispatches, reaching 1.35 million in the fourth quarter.
Gross margins for the quarter were reported at 37.6%, consistent with expectations, though slightly down from 39.1% in the same quarter the previous year. Distribution and administrative expenses rose by 15% year-on-year to Rs1.29 billion, while overall expenses for the fiscal year increased by 11% to Rs5.2 billion. Despite a 2% year-on-year decline in other income to Rs492 million in the fourth quarter, the full fiscal year saw a 42% increase in other income to Rs2.5 billion.
Finance costs experienced a decline, dropping by 18% year-on-year and 9% quarter-on-quarter to Rs931 million, attributed to lower interest rates and reduced debt levels. For the entire fiscal year, finance costs decreased by 28% to Rs4.1 billion. The company also declared a final cash dividend of Rs1.5 per share for the fourth quarter.
Additionally, FCCL's Board has authorized management to explore a potential merger with Attock Cement Pakistan Limited (ACPL) and to present its recommendations. The company's stock continues to show promise, with a maintained "Buy" stance, currently trading at an FY27 estimated price-to-earnings ratio of 8.2.