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Analyst Opinion
FCCL - Fauji Cement Company Ltd.
Fauji Cement Company Limited (FCCL) – FY26 Financial & Operational Performance
Neha Naz    8/12/2026 12:00:00 AM
Income Statement Highlights: FCCL delivered a strong financial performance in FY26, driven by top-line growth, operational efficiencies and reduced financing costs. Currently, FCCL is yielding a trailing PE of 8.8x & leading PE of 5.8x. Revenue grew by 5% YoY to Rs. 93.69bn (up from Rs. 88.96bn), while Gross Profit rose 4% YoY to Rs. 32.72bn, yielding a solid 35% Gross Profit Margin. This profitability was backed by strategic cost optimization initiatives, including higher reliance on local coal, alternative fuels, captive power generation and in-house PP bag production. Operating profit consequently edged up 2% YoY to Rs. 26.67bn. Further supporting bottom-line expansion, finance costs fell 28% YoY to Rs. 4.17bn due to accelerated debt repayments, finance income jumped 67% YoY to Rs. 1.78bn and bottom-line earnings were boosted by FCCL's share of net profit from its equity-accounted investment in Attock Cement. As a result, Net Income surged 21% YoY to Rs. 16.18bn, driving EPS up 22% to Rs. 6.60. FCCL gave a dividend payout of Rs. 1.50 per share. Balance Sheet & Deleveraging Highlights: - Significant Deleveraging: Long-term loans were reduced by 36.69% YoY, dropping from Rs. 24.208bn to Rs. 15.327bn, significantly easing financial risk. - Improved Liquidity: Cash and bank balances surged by 38.16% YoY, increasing from Rs. 2.665bn to Rs. 3.682bn. - Strategic Equity Investment: FCCL recorded a new long-term equity investment of Rs. 21.196bn in FY26 following its joint acquisition of Attock Cement (ACPL) with KAPCO. Cash Flow Highlights: - Strategic Growth Outflow: FCCL deployed Rs. 20.914bn toward the acquisition of Attock Cement Pakistan Ltd in FY26. - Aggressive Debt Settlement: Repayment of long-term loans expanded by 291% YoY, jumping to Rs. 18.199bn compared to Rs. 4.657bn in FY25. - Higher Cash Payouts: Total dividend distribution increased by 25% YoY to Rs. 3.061bn (up from Rs. 2.447bn in FY25), reinforcing capital return to shareholders.