FFC Posts Rs15.9 Billion Q4 Profit for 2025, Margins Pressure Weigh on Earnings
Karachi: Fauji Fertilizer Company (FFC) released its fourth-quarter financial results for 2025, reporting an unconsolidated quarterly profit of Rs15.9 billion, translating to earnings per share (EPS) of Rs11.20. This marks a 12% increase from the previous year but a 17% decline from the previous quarter, falling short of industry expectations.
According to JS Global, the lower-than-anticipated results are primarily due to diminished gross margins. The company’s gross margins were recorded at 25.2% for the fourth quarter of 2025, compared to 25.9% in the same quarter the previous year and 30.8% in the third quarter of 2025. The decrease in gross margins is attributed to an impairment of Rs8-9 billion booked on sales tax receivables.
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Other income for FFC declined by 21% year-on-year and 14% quarter-on-quarter to Rs5.4 billion in the fourth quarter of 2025. This drop is linked to the absence of dividend income from energy businesses. Despite this, cumulative other income for 2025 rose by 13% to Rs39.8 billion.
The company’s net sales increased by 18% compared to the previous quarter, remaining flat year-on-year at Rs149.7 billion, driven by record urea sales in December. Cumulative sales for 2025 reached Rs432 billion, up by 16%.
Distribution expenses fell by 14% year-on-year but rose by 4% quarter-on-quarter to Rs8.9 billion. The finance costs stayed steady at Rs1.6 billion for the fourth quarter, totaling Rs6.5 billion for 2025. Tax expenses amounted to Rs13.8 billion, with an effective tax rate of 47%.
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FFC also announced an annual cash dividend of Rs8.50 per share, which aligns with a payout ratio of 72% for 2025, compared to 80% in 2024. Despite the earnings falling short of expectations, JS Global maintains a “Buy” stance on FFC stock, noting its current trading at a 2026 estimated P/E of 10.8x and a dividend yield of 7%.
 released its fourth-quarter financial results for 2025, reporting an unconsolidated quarterly profit of Rs15.9 billion, translating to earnings){kind=link}