⚡ Flash Summary

Fauji Fertilizer Company (FFC) held its Fourth Corporate Briefing on October 29, 2025, discussing the nine-month period ended September 30, 2025. The urea market experienced an 8% contraction, with industry sales decreasing to 4,205 KT from 4,573 KT in the prior year. FFC’s share in the urea market declined from 51% to 47%. In contrast, the DAP market saw a 17% contraction, but FFC’s market share increased from 66% to 69%.

📌 Key Takeaways

• 📉 Urea market contracted by 8%, with industry sales at 4,205 KT vs. 4,573 KT SPLY 2024.
• 📉 FFC’s urea market share declined to 47% from 51%.
• 🏭 FFC’s urea production was 2,207 KT (44%) out of the industry’s 5,007 KT.
• 📦 FFC’s urea inventory stood at 294 KT (25%) compared to the industry’s 1,162 KT.
• 📈 DAP market contracted by 17%, with industry sales at 783 KT vs. 940 KT SPLY.
• 📈 FFC’s DAP market share increased to 69% from 66%.
• 🏭 FFC’s DAP production/imports were 622 KT (58%) out of the industry’s 1,064 KT.
• 📦 FFC’s DAP inventory was 110 KT (29%) compared to the industry’s 380 KT.
• 💰 Revenue increased to PKR 283 Bn from PKR 224 Bn LY.
• 💰 Gross Profit increased to PKR 93 Bn from PKR 88 Bn LY.
• 💰 Operating Profit remained flat at PKR 69 Bn.
• 💰 Other Income increased to PKR 34 Bn from PKR 28 Bn LY.
• 💰 Profit after tax increased to PKR 57.6 Bn from PKR 50.6 Bn LY.
• 💰 Earning per Share increased to PKR 40.50 from PKR 35.53 LY.
• 🏦 Equity & Reserves increased to PKR 133 Bn from PKR 132 Bn.
• 🏦 Stock in trade increased to PKR 60 Bn from PKR 24 Bn.
• 🏦 Long term Borrowing decreased to PKR 24 Bn from PKR 31 Bn.
• 🏦 Short term Investments decreased to PKR 142 Bn from PKR 204 Bn.
• ⚖️ Debt to Equity ratio improved to 15%:85% from 19%:81%.
• ✔️ Current Ratio decreased to 1.05 Times from 1.14 Times.

🎯 Investment Thesis

Based on the provided information, a HOLD recommendation is appropriate. While revenue and profit have increased, the contraction in the urea market and decline in market share raise concerns. The improved EPS and balance sheet are positive, but further analysis is needed to determine a specific price target and time horizon. More information is needed about the company’s future strategy and market outlook.