Fauji Fertilizer Company (FFC) reported unconsolidated earnings of Rs22.3 billion (EPS: Rs15.5) for 3QCY26, up 16% year-on-year, driven by improved margins and higher other income, according to AKD Securities.

The research house noted that FFC announced an interim cash dividend of Rs18.5 per share, bringing the nine-month payout to Rs41.5 per share and the payout ratio to 93%, the highest since CY14.

AKD Research said revenue remained flat at Rs127.7 billion despite lower urea and DAP offtakes, while gross margins improved to 33.6% from 30.8% a year earlier due to a higher share of urea sales and stronger pricing.

Maintaining its “Buy” recommendation, AKD Securities said FFC’s outlook remains supported by lower gas costs, an expected recovery in fertilizer offtakes and recurring dividend income from power and banking subsidiaries.