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$FCCL Fauji Cement Company Limited (FCCL): 1QFY26 Result Review – By AKD Research

AKD Securities
$FCCL Fauji Cement Company Limited
Rs. 53.09 -2.94%
  • Fauji Cement Company Ltd. (FCCL) announced its 1QFY26 financial results, re porting profitability of PkR3.3bn (EPS: PkR1.34), up 1%YoY, compared to PkR3.2bn (EPS: PkR1.32) in SPLY. Result was slightly below our expectations due to lower than anticipated margins.
  • Revenue clocked in at PkR23.4bn during 1QFY26 compared to PkR22.9bn in SPLY, up 2%YoY, primarily due to 13%YoY increase in offtakes, though partially offset by 10%YoY decline in retention prices.
  • We maintain a ‘Buy’ stance on FCCL with a Jun’26 DCF target price of PkR76.8/ sh. Our positive view is anchored by, i) industry-leading retention prices, ii) im proving gross margins (FY26E GM: 34.1%) given optimal energy mix, and iii) de clining financing cost amid easing policy rate given its moderate leverage posi t ion (D/E: 0.46x).