Fatima Fertilizer Company Ltd. (FATIMA) has announced its 1QCY25 financial results, reporting consolidated earnings of PKR 8.4 billion (EPS: PKR 3.99), remaining flat year-over-year.

Key Highlights:

– Revenue: PKR 52.0 billion, down 21% year-over-year due to lower offtakes.
– Gross Margins: Slightly contracted to 40.4% from 41.5% in the same period last year.
– Other Income: PKR 2.2 billion, down 4% year-over-year.
– Other Expenses: Declined by 82% year-over-year due to the absence of one-off brand impairment charges.
– Finance Cost: Increased by 2.3x year-over-year to PKR 1.9 billion due to higher borrowings.
– Effective Tax Rate: 39% during the quarter.

Outlook:

AKD Research maintains a ‘BUY’ stance on Fatima with a target price of PKR 103 per share for December 2025. An anticipated recovery in future offtakes drives the bullish outlook, lower gas prices supporting high gross margins, and improved liquidity.