⚡ Flash Summary

Fauji Fertilizer Company (FFC) reported improved financial performance for the nine months ended September 30, 2025. The company saw an increase in revenue, gross profit, and profit after tax compared to the same period last year. FFC’s share in the urea market declined while its share in the DAP market increased. The company is also exploring coal gasification for fertilizer manufacturing as part of its business sustainability strategy and is focused on farmer empowerment through its Sona Centers.

📌 Key Takeaways

• 📈 PAT 9M’25 increased to PKR 56.7 bn vs PKR 50.6 bn LY, demonstrating strong profitability.
• 💰 Highest ever Dividend Income of PKR 20.9 bn, enhancing shareholder value.
• ✅ FFC is making progress towards Shariah compliant status, broadening its investor appeal.
• 🌾 Benefit of USD 325mn passed on to farmers, indicating a commitment to agricultural development.
• 🏪 Sona centers are providing integrated retail solutions, strengthening market presence.
• 🌍 Market capitalization of USD ~2.5 Bn, reflecting significant market confidence.
• 📉 Urea market contracted by 8%, with industry sales at 4,205 KT vs 4,573 KT SPLY 2024.
• ⬇️ FFC’s share in the urea market declined to 47% vs 51% SPLY.
• ⬆️ DAP market contracted by 17%, with industry sales at 783 KT vs 940 KT SPLY.
• ⬆️ FFC’s share in the DAP market increased to 69% vs 66% SPLY.
• ⏫ Total sales volume increased by 39% from Q2’25 to Q3’25.
• 💰 Revenue increased to PKR 283 Bn vs LY 224 Bn.
• ✅ Gross Profit improved to PKR 93 Bn vs LY 88 Bn.
• 📊 EPS increased to PKR 40.50 vs LY 35.53.
• ✅ Stable interest rates of 11%.

🎯 Investment Thesis

FFC is a BUY due to its improved financial performance, strong market position in DAP, and focus on sustainable practices. The increasing EPS and dividend income enhance shareholder value. The company’s Sona Centers and efforts to empower farmers also contribute positively to its long-term growth. Price target: PKR 180, Time horizon: 12 months.