External broker reports(aggregated public sources), Topline Securities

Topline Securities

External broker reports(aggregated public sources)

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Equity Bottom-Up

<ul>
<li>Fauji Cement Company Limited (FCCL) conducted its FY26 corporate briefing session today where management discussed financial performance and future outlook.</li>
<li>Management expects local cement demand to grow by around 8–10% in FY27, supported by an anticipated recovery in construction activity and improved domestic demand.</li>
<li>We maintain buy stance on FCCL. The company is currently trading at FY27E PE of 7.2x.</li>
</ul>


Fauji Cement Company Limited (FCCL) conducted its FY26 corporate briefing session today where management discussed financial performance and future outlook.
Management expects local cement demand to grow by around 8–10% in FY27, supported by an anticipated recovery in construction activity and improved domestic demand.
We maintain buy stance on FCCL. The company is currently trading at FY27E PE of 7.2x.


Topline Flash Note: Fauji Cement (FCCL) - Corporate Briefing Key Takeaways

Thematic (Sector/Industry)

<ul><li>Topline Cement Universe is expected to post profitability of Rs32.4bn in 1QFY27 against profit of Rs27.8bn in 1QFY26, up by 16% YoY and 16% QoQ.</li><li>The YoY increase in earnings is primarily driven by increase in net sales amid higher retention prices.</li><li>Net sales are expected to reach Rs143bn in 1QFY27, reflecting growth of 25% YoY and 14% QoQ.</li></ul>

Topline Cement Universe is expected to post profitability of Rs32.4bn in 1QFY27 against profit of Rs27.8bn in 1QFY26, up by 16% YoY and 16% QoQ.The YoY increase in earnings is primarily driven by increase in net sales amid higher retention prices.Net sales are expected to reach Rs143bn in 1QFY27, reflecting growth of 25% YoY and 14% QoQ.

Pakistan Cements - Profitability Likely to Be Up by 16% YoY in 1QFY27; Led by Higher Local Volumetric Sales and Retention Prices

<ul><li>FCCL announced its 4QFY26 result today, where the company recorded earnings of Rs5.40bn (EPS: Rs2.20), up by 38% YoY and 56% QoQ.</li><li>The result came in higher than expectations primarily due to lower-than-expected effective tax rate (ETR).</li><li>We maintain our Buy stance on FCCL, which is currently trading at FY27E PE of 8.2x.</li></ul>

FCCL announced its 4QFY26 result today, where the company recorded earnings of Rs5.40bn (EPS: Rs2.20), up by 38% YoY and 56% QoQ.The result came in higher than expectations primarily due to lower-than-expected effective tax rate (ETR).We maintain our Buy stance on FCCL, which is currently trading at FY27E PE of 8.2x.

Fauji Cement (FCCL) – 4QFY26 EPS at Rs2.20, Up 56% QoQ, FY26 EPS at Rs6.60 (Higher Than Expectations)

Cross Asset Strategy

<ul><li>KSE-100 index companies posted earnings of Rs609bn in 4QFY26, up 34% YoY and 20% QoQ.</li><li>The E&P sector witnessed significant boost in profitability, surging 2.6x YoY and 2.3x QoQ to Rs214.2bn, mainly driven by a huge tax reversal following the FCC’s decision on super tax.</li><li>This takes the FY26 dividends to Rs904.4bn, up 11% with a payout ratio of around 45%.</li></ul>

KSE-100 index companies posted earnings of Rs609bn in 4QFY26, up 34% YoY and 20% QoQ.The E&P sector witnessed significant boost in profitability, surging 2.6x YoY and 2.3x QoQ to Rs214.2bn, mainly driven by a huge tax reversal following the FCC’s decision on super tax.This takes the FY26 dividends to Rs904.4bn, up 11% with a payout ratio of around 45%.

Pakistan Strategy - Corporate Profitability Up 34% in 4QFY26; FY26 Earnings Up 23%; Dividends Up 11%

<ul><li>Pakistan's listed cement sector reported earnings of Rs38.41bn in 4QFY26, up by 23% YoY and 12% QoQ.</li><li>In FY26, sector profitability increased 13% YoY to Rs143bn, driven by improved retention prices, stable gross margins, and lower finance costs.</li><li>Net sales for the cement sector increased 9% YoY and 3% QoQ to Rs179.3bn in 4QFY26.</li></ul>

Pakistan's listed cement sector reported earnings of Rs38.41bn in 4QFY26, up by 23% YoY and 12% QoQ.In FY26, sector profitability increased 13% YoY to Rs143bn, driven by improved retention prices, stable gross margins, and lower finance costs.Net sales for the cement sector increased 9% YoY and 3% QoQ to Rs179.3bn in 4QFY26.

Pakistan Cements - Cement Sector Profits Rise 23% YoY in 4QFY26; Led by Improved Retention Prices and a Lower Effective Tax Rate

Pakistan

Fauji Cement Company Limited manufactures and sells cement.

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Fauji Cement (FCCL PA)

Topline Flash Note: Fauji Cement (FCCL) - Corporate Briefing Key Takeaways

Fauji Cement Company Limited (FCCL) conducted its FY26 corporate briefing session today where management discussed financial performance and...

Topline Securities

Pakistan Cements - Profitability Likely to Be Up by 16% YoY in 1QFY27; Led by Higher Local Volumetric Sales and Retention Prices

Topline Cement Universe is expected to post profitability of Rs32.4bn in 1QFY27 against profit of Rs27.8bn in 1QFY26, up by 16% YoY and 16%...

Topline Securities

Fauji Cement (FCCL) – 4QFY26 EPS at Rs2.20, Up 56% QoQ, FY26 EPS at Rs6.60 (Higher Than Expectations)

FCCL announced its 4QFY26 result today, where the company recorded earnings of Rs5.40bn (EPS: Rs2.20), up by 38% YoY and 56% QoQ. The result came...

Topline Securities

Pakistan Strategy - Corporate Profitability Up 34% in 4QFY26; FY26 Earnings Up 23%; Dividends Up 11%

KSE-100 index companies posted earnings of Rs609bn in 4QFY26, up 34% YoY and 20% QoQ. The E&P sector witnessed significant boost in...

Topline Securities

Pakistan Cements - Cement Sector Profits Rise 23% YoY in 4QFY26; Led by Improved Retention Prices and a Lower Effective Tax Rate

Pakistan's listed cement sector reported earnings of Rs38.41bn in 4QFY26, up by 23% YoY and 12% QoQ. In FY26, sector profitability increased 13%...

Topline Securities

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