Fauji Cement Company Limited (PSX: FCCL) reported a strong financial performance for the year ended June 30, 2026, with profit after tax rising to Rs16.18 billion, compared with Rs13.33 billion in the preceding year, reflecting an increase of around 21% year-on-year.

The company's net revenue increased to Rs93.69 billion during FY26 from Rs88.96 billion a year earlier, representing growth of around 5%. Gross profit stood at Rs32.72 billion, compared with Rs31.57 billion in FY25, while the gross profit margin remained at approximately 35%.

Fauji Cement attributed its performance to cost optimisation measures, including increased use of local coal and multiple alternative fuels, in-house production of polypropylene bags, enhanced captive power generation and early repayment of loans. The company's cement dispatches also increased by 6% year-on-year to 5.7 million tonnes, compared with 5.4 million tonnes in the same period last year.

Operating profit improved to Rs26.67 billion from Rs26.23 billion in FY25. Selling and distribution expenses increased to Rs3.24 billion from Rs2.94 billion, while administrative expenses rose to Rs1.92 billion from Rs1.69 billion. Other income increased to Rs812.54 million from Rs760.77 million.

The company's financing burden eased during the year, with finance costs declining to Rs4.17 billion from Rs5.77 billion. Finance income, meanwhile, increased to Rs1.78 billion from Rs1.07 billion, bringing net finance cost down to Rs2.38 billion from Rs4.70 billion in the previous year.

Profit before income tax and levy consequently increased to Rs24.52 billion, compared with Rs21.53 billion in FY25. After an income tax expense of Rs8.34 billion, profit for the year settled at Rs16.18 billion. Basic and diluted earnings per share (EPS) improved to Rs6.60 from Rs5.43 a year earlier.

The Board of Directors recommended a final cash dividend of Rs1.50 per ordinary share, equivalent to 15%, for the year ended June 30, 2026. No bonus shares or right shares were announced.

Fauji Cement also reported stronger cash generation, with net cash generated from operating activities rising to Rs26.93 billion from Rs22.99 billion in FY25. Cash generated from operations stood at Rs36.97 billion, compared with Rs28.83 billion in the preceding year.

During FY26, the company recorded net cash used in investing activities of Rs13.88 billion, which included a net investment of approximately Rs20.91 billion in Attock Cement Pakistan Limited. Net cash used in financing activities amounted to Rs12.36 billion, while cash and cash equivalents at the end of the year stood at Rs3.01 billion.

Alongside the financial results, Fauji Cement disclosed that its board had authorised management to explore and evaluate the feasibility of a potential merger of Attock Cement Pakistan Limited with and into Fauji Cement Company Limited. Management will assess the proposed transaction and present its recommendations to the board for consideration. The disclosure indicates that the potential merger remains at the evaluation stage.

The company's 34th Annual General Meeting is scheduled for September 28, 2026, at 3:00pm in Islamabad, while its share transfer books will remain closed from September 22 to September 28, 2026, both days inclusive.