Karachi: Fauji Cement Company Limited (FCCL) has reported a significant increase in its financial performance for the fiscal year 2025-26, overcoming a challenging economic environment that included subdued construction activity and geopolitical uncertainties. The company recorded a turnover of Rs 93,690 million, representing a 5% increase over the previous year. Profit after tax (PAT) rose by 21% year-on-year to Rs 16,183 million, marking the fourth consecutive year of record profits for the company.
According to the company's annual report released on September 7, 2026, FCCL achieved this growth despite external pressures such as the closure of the Pakistan-Afghanistan border and supply chain disruptions due to the conflict in Iran, which affected regional trade and increased coal prices. The company implemented a focused fuel cost optimization strategy, sourcing cheaper coal and increasing local coal utilization to 70%, which helped mitigate production cost impacts.
The report highlights FCCL's strategic acquisition of a controlling 92% stake in Attock Cement Pakistan Limited (ACPL) in partnership with Kot Addu Power Company Limited. This acquisition significantly expanded FCCL's production capabilities and geographic reach, enhancing its business platform. The company's Managing Director emphasized the importance of operational excellence and cost optimization, which remained central to FCCL's strategy.
The annual report also detailed FCCL's investment in expanding its Hattar Industrial Estate facility, increasing production capacity from 200,000 to 300,000 bags per day. FCCL has been advancing its digital transformation, implementing ABB Ability™ Expert Optimizer to improve energy efficiency and enhance clinker quality.
In terms of sustainability, FCCL has increased its renewable energy capacity, adding 2.8 MW of captive solar generation, bringing total renewable capacity to 70.3 MWp. This, along with Waste Heat Recovery systems, meets approximately 80% of the company's daytime electricity requirements.
According to information available from the Pakistan Stock Exchange (PSX), FCCL's EBITDA rose to Rs 33,064 million, underscoring its financial management strength. The company's gross profit margin was maintained at 35%, while the net profit margin improved to 17% due to decreased finance costs and a lower tax rate.
FCCL's commitment to environmental stewardship and community development was evident in its continued afforestation initiatives, water conservation measures, and alignment with IFRS Sustainability Disclosure Standards. The company's Corporate Social Responsibility spending increased to Rs 203 million, supporting various community initiatives.
Looking ahead, FCCL plans to capitalize on emerging opportunities with its expanded production platform, focusing on operational synergies with ACPL, digital transformation, and renewable energy investments. The company aims to deliver sustainable growth and long-term value for shareholders in a business environment marked by global economic uncertainty and evolving market dynamics.