Fatima Fertilizer Company Limited (PSX: FATIMA) has reported a robust 16 percent increase in net profit for the year ended December 31, 2025, reaching Rs42.06 billion compared to Rs36.39 billion in 2024. This growth was accompanied by a proportional rise in earnings per share (EPS), which increased to Rs20.03 from Rs17.33 in the previous year.
The company also announced a final cash dividend of Rs2.50 per share, or 25 percent, for 2025, adding to the interim dividend of Rs3.50 per share, or 35 percent, paid earlier. Collectively, the total dividend payout for the year amounts to 60 percent, reflecting a strong commitment to shareholder returns.
Revenue for the year climbed 7.5 percent to Rs276.18 billion, up from Rs256.92 billion in 2024, supported by steady demand for fertilizers in the domestic market. Cost of sales increased at a slightly faster pace of 10 percent, reaching Rs181.75 billion, resulting in a gross profit of Rs94.42 billion, up nearly 3 percent from Rs91.82 billion the previous year.
Operating expenses showed mixed trends, with distribution costs rising 20 percent to Rs17.31 billion and administrative expenses up 6 percent to Rs11.04 billion, reflecting higher operational activity and workforce expansion. Finance costs increased sharply by 56 percent to Rs7.94 billion, driven by higher borrowing during the year. Other operating expenses, however, were significantly reduced by 46 percent to Rs5.82 billion, providing relief to the operating margin.
A major factor contributing to the company’s strong bottom-line performance was a 29 percent increase in other income, which reached Rs16.19 billion compared to Rs12.50 billion in the prior year. This growth helped offset rising costs and supported a profit before tax of Rs68.34 billion, up 9 percent from Rs62.83 billion. Notably, taxation expense remained largely stable, dipping slightly by 0.6 percent to Rs26.28 billion, enabling net profit to grow at a higher pace.
The company’s performance reflects resilience in both operational management and financial strategy, balancing cost pressures with income growth. The EPS increase to Rs20.03 underscores the profitability gains for shareholders and strengthens Fatima Fertilizer’s market position within Pakistan’s chemical and fertilizer industry.
Fatima Fertilizer’s strategic focus on cost efficiency, revenue diversification, and operational discipline has positioned the company for sustainable growth. The combination of solid top-line expansion, improved other income, and effective management of expenses highlights the company’s ability to deliver shareholder value while navigating industry challenges, including fluctuating input costs and macroeconomic pressures.
Looking ahead, Fatima Fertilizer is well-placed to maintain its strong financial performance, continue delivering consistent dividends, and leverage its market leadership to expand sales and operational efficiency in the coming years. The company’s robust fundamentals provide confidence in sustained profitability and strategic growth within Pakistan’s fertilizer sector.
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