The company’s profit increased by 32 percent during January-March 2026.
Karachi: Fauji Fertilizer Company (FFC) said that the company holds a 34 percent stake in PIA Equity Pvt. Ltd. and the consortium will acquire 100 percent ownership of PIA by May 2027. Payment for PIA will be made after the completion of the Conditions Precedent (CPs). The company will arrange additional borrowing to acquire PIA shares.
While briefing on the financial results, FFC stated that the company’s standalone profit increased by more than 32 percent during the first quarter of 2026. The company posted a standalone profit of Rs17.5 billion during January-March 2026, compared to Rs13.3 billion in the same period of 2025. Earnings per share stood at Rs12.1 compared to Rs9.3 per share last year. The increase was mainly driven by higher sales and dividend income received from TEL.
FFC’s urea sales increased by 12 percent during the first quarter to 601,000 tons, compared to a 6 percent increase in the overall fertilizer industry sales. FFC’s market share rose to 58 percent. As of March 2026, the company held 106,000 tons of urea inventory, representing 13 percent of the total industry stock.
FFC’s DAP sales increased 2.1 times year-on-year to 181,000 tons. Overall DAP industry sales recorded a 94 percent increase during the period. The company’s market share rose to 63 percent. FFC currently holds 92,000 tons of DAP inventory, accounting for 44 percent of the total industry stock.
FFC stated that the ongoing conflict in the Middle East has affected the availability of sulphur. The company said that 97 percent of sulphur imports to Pakistan are transported through the Strait of Hormuz, while 50 percent of global supply originates from the Middle East. Since sulphur is a key component in phosphoric acid production, prices have increased and supply disruptions have emerged.
Rising energy prices also remain a concern. A limited portion of the additional cost has been passed on to consumers, while the company is trying to avoid placing an extra burden on farmers.
Fauji Fertilizer Bin Qasim Limited (FFBL) is facing gas supply shortages at its plant. According to the management, disruptions in gas supply could result in a loss of around 100,000 tons in overall industry urea production.
The landed cost of imported urea in the international market currently stands at around Rs14,000 per bag, compared to the local price of Rs4,400 per bag. The company has withdrawn all urea discounts offered in December 2025 and has no plans to offer new discounts in the coming months.
The company has also planned a 15-day turnaround and maintenance shutdown for one of its urea plants during the third quarter.
