Fauji Fertilizer Declares Higher Dividend After Strong Nine-Month Prof

Fauji Fertilizer Declares Higher Dividend After Strong Nine-Month Profits

Fauji Fertilizer Company Limited posted a net profit of Rs. 64.2 billion for the first nine months of 2026 and announced a dividend of Rs. 18.5 per share.

NationPulse Desk

Oct 28, 2026 · 4:33 PM 2 min read

Key takeaways

Fauji Fertilizer Company Limited reported a net profit of Rs. 64.2 billion for the first nine months of calendar year 2026.

The company declared a dividend of Rs. 18.5 per share for 3QCY26, creating a payout ratio of 119 percent.

Third-quarter net profit stood at Rs. 22.3 billion with earnings per share at Rs. 15.51.

Finance costs rose 93 percent year over year to Rs. 3.3 billion in 3QCY26 as borrowings climbed to Rs. 102 billion.

Fauji Fertilizer Company Limited announced a net profit of Rs. 64.2 billion during the first nine months of calendar year 2026, marking an 11 percent rise compared to Rs. 57.6 billion from the same timeframe last year.

For 3QCY26, the company declared a dividend of Rs. 18.5 per share, moving up from Rs. 14.5 per share in the preceding quarter, which results in a payout ratio of 119 percent.

This distribution marks the firm's second-highest quarterly dividend ever, trailing only the Rs. 21 per share declared in December 2024 that combined two quarters of dividends following the merger of FFC and FFBL.

During the third quarter, the enterprise registered a net profit of Rs. 22.3 billion along with earnings per share of Rs. 15.51, representing an 8 percent drop from the previous quarter. Total earnings per share climbed to Rs. 44.59 compared to Rs. 40.50.

Net sales held mostly steady at Rs. 127.7 billion through 3QCY26. Prilled and granular urea sales dropped by 8.9 percent and 10.9 percent year over year, while Sona DAP sales fell by 22.3 percent. FFC last adjusted its urea prices upward in April 2026, matching EFERT's schedule.

Margins for DAP and phosphoric acid dropped to $125 per ton in 3QCY26 down from $238 per ton in the prior quarter. Phosphoric acid prices jumped 29 percent quarter over quarter, outpacing a 7 percent increase in DAP prices and putting pressure on gross margins despite strong spreads.

Gross margins grew to 33.6 percent in 3QCY26, up from 33.1 percent in the last quarter and 30.8 percent in 3QCY25, supported by inventory gains from higher DAP prices, cheaper phosphoric acid stock, and better urea pricing.

Other income reached Rs. 9.3 billion during 3QCY26, containing expected dividends of Rs. 2 per share from AKBL and Rs. 1.5 per share from FCCL, plus roughly Rs. 4.3 billion in investment income. Power sector investments likely provided extra dividend income as well.

Finance costs jumped 93 percent year over year to hit Rs. 3.3 billion in 3QCY26 due to a larger debt burden. Total borrowings grew to Rs. 102 billion from Rs. 52 billion year over year, driven largely by funding for PIA and PEF investments.

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