Fauji Cement Company Limited (PSX: FCCL) announced its 1QFY26 results on Monday, reporting earnings of Rs. 3.29 billion (EPS of Rs. 1.34), up 2 percent year-on-year (YoY).
The result came in below expectations due to lower gross margins, according to brokerage house Topline Securities.
The company recorded gross margins of 32 percent in 1QFY26, compared to 34 percent in 1QFY25 and 39 percent in 4QFY25, while market expectations were around 37 percent. The quarter-on-quarter (QoQ) decline in margins was primarily driven by lower retail cement prices and changes in the power mix. Further clarity is awaited from the release of detailed accounts.
The company did not announce any cash dividend for 1QFY26, which was in line with expectations.
Earnings increased by 2 percent YoY in 1QFY26, supported by higher net revenue and lower financial charges. Net revenue rose 2 percent YoY and 7 percent QoQ to Rs. 23.42 billion. This growth was mainly driven by higher domestic and export dispatches.
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Domestic dispatches increased by 6 percent YoY and 5 percent QoQ to 1.24 million tons, while export dispatches grew 62 percent YoY and 31 percent QoQ to 0.27 million tons. Finance costs declined by 51 percent YoY to Rs. 668 million, primarily due to lower interest rates following monetary easing.
The effective tax rate in 1QFY26 stood at 38 percent, broadly similar to 1QFY25 (38 percent) and 4QFY24 (39 percent).
