Karachi: Fauji Cement Company Ltd. (FCCL) has reported a notable increase in its third-quarter earnings for the fiscal year 2025, with profits rising to PkR2.1 billion, a 21% year-on-year increase. The improvement, however, fell short of analyst expectations due to higher finance costs.

The company's revenue increased slightly by 1% to PkR19.3 billion, driven by higher retention prices that offset a 1% decline in offtakes. Gross margins saw a rise to 32.5%, attributed to increased retention prices and a reduction in energy costs.

Operating expenses decreased by 4%, largely due to reduced distribution costs amid lower exports. Meanwhile, other income rose by 46% thanks to higher short-term investments, despite a trend of declining yields.

Finance costs remained stable at PkR1.6 billion, though they were higher than anticipated. Analysts are awaiting further details on this aspect.

For the cumulative nine-month period of FY25, earnings reached PkR9.4 billion, marking a 34% increase from the same period the previous year. The company's performance is supported by market share growth and an efficient mix of coal and power.

AKD Securities Limited maintains a 'BUY' stance on FCCL, citing market share expansion, sustained margins, and easing interest rates as factors supporting future earnings. The target price for December 2025 is set at PkR61 per share.