Fatima Fertilizer Company Limited: performance and outlook

Business Recorder reported that Fatima Fertilizer Company Limited (PSX: FATIMA) recorded a 33.81 per cent fall in topline during the first quarter of CY26, which reached Rs27,929.24 million. The company attributed the drop to lower sales volumes, which it linked to weak farm economics and irregular production caused by gas supply problems. Net profit fell 48.09 per cent to Rs4189.33 million, leaving earnings per share at Rs1.99 compared with Rs3.84 a year earlier.

Gross margin improved to 46.69 per cent from 43.94 per cent, helped by higher fertilizer prices linked to geopolitical tensions, while distribution expenses fell 13.79 per cent. Administrative expenses rose 43.25 per cent on higher payroll costs and donations, and operating profit dropped 43 per cent, with operating margin at 30.57 per cent against 35.51 per cent in the same period last year. Other income of Rs1351.76 million was 41.47 per cent lower, which the report links to monetary easing and a sharp fall in short-term investments.

Full-year 2025 net profit had declined 12.91 per cent to Rs30468.05 million, with EPS of Rs14.51. The company expects fertilizer demand to rise in the Kharif season and plans to open more retail outlets, while its joint venture National Resources (Private) Limited has found copper-gold resources in Balochistan. The company also intends to invest in mining, aviation and real estate to diversify its earnings.