“FFC delivered strong earnings growth during 9MCY26 on the back of higher urea prices, improved margins and healthy dividend income, while management remains optimistic about demand recovery and crop yield enhancement initiatives.”

Fauji Fertilizer Company (FFC) reported strong results for 9MCY26, posting earnings of PKR 64.2 billion, up 116% year-on-year, supported primarily by higher urea prices, improved margin realization, and dividend income from subsidiary companies. Urea sales rose 10% YoY to 2.2 million tons, while DAP sales remained largely flat at 524,000 tons amid subdued demand. The company also said farm economics have improved due to lower cultivation costs, while newly launched products aimed at boosting crop yields are gaining market traction.

Management expects the domestic fertilizer market to improve in the coming months, supported by better farm profitability and stronger nutrient demand. During the briefing, FFC also noted a significant increase in its strategic investment portfolio, including a higher stake in PIA Equity Pvt. Ltd. AKD Research maintained its ‘Buy’ recommendation on the stock with a Dec’26 target price of PKR801 per share, citing lower gas costs, expected recovery in fertilizer offtake, improved performance of subsidiary businesses and continued earnings support from investment income. However, elevated DAP inventories and a softer outlook for urea prices remain key factors to watch.