Karachi: Fauji Fertilizer Company (FFC) held its Corporate Briefing Session for the second quarter of 2026, highlighting a stable outlook for urea demand despite geopolitical tensions impacting raw material prices. The company reported a 25% year-on-year growth in urea sales, with its market share rising to 56% in the first half of 2026.

According to JS Global, the management expects industry urea demand to reach 6.6 million tons in 2026, a slight decrease of 2% from the previous year. The demand for DAP fertilizers, however, could be affected by rising international sulfur prices, exacerbated by geopolitical disruptions in the Middle East, a major supplier of sulfur. FFC stated that it does not plan to increase urea prices in the near term, though future adjustments may depend on geopolitical developments.

The company has also announced a collaboration with Yara International, launching six new products aimed at enhancing crop yields by 7-10%. Despite a gas shortage affecting the Agritech plant, FFC confirmed that operations at the Port Qasim plant continue without disruption. Additionally, FFC has made significant investments, including a Rs30 billion tranche in Pakistan International Airlines (PIA) and received substantial dividends from its Power and Banking sectors.

The company’s Sona Centre network has expanded its reach, engaging over 131,000 farmers and covering 2.22 million acres of farmland. FFC remains optimistic about dividend sustainability, noting that the elevated payout ratio in the second quarter is an exception, with expectations to return to previous levels by year-end. The stock maintains a buy stance, with a projected dividend yield of 9% for 2026.