Fatima Fertilizer Company Limited (FATIMA) reported earnings per share of PKR 20.03 for FY25, compared to earnings per share of PKR 17.33 in FY24. Furthermore, in 3QFY26, the company reported earnings per share of PKR 1.54, compared to earnings per share of PKR 3.99 in the same period last year (SPLY).
Management highlighted that the group has exposure across multiple sectors, including fertilizers, aviation, mining, petroleum, real estate, corporate farming, asset management, and packaging, supporting diversification across its investment portfolio. Through its wholly owned subsidiary, Fatima Petroleum Company Limited (FPCL), the company has secured interests in six exploration blocks, including offshore assets, in partnership with Mari Energies Limited and TPAO.
Management described the upcoming federal budget as likely neutral for the fertilizer sector, expecting no adverse policy developments while hoping the government maintains the existing farmer focused support measures. Management noted that increased transportation costs arising from fuel price fluctuations have largely been passed on to farmers, allowing the company to maintain margins without absorbing the additional cost pressures.
While two plants were temporarily shut down during the recent US-Iran geopolitical situation, management confirmed that all plants are now fully operational and expressed confidence regarding uninterrupted gas supplies for the remainder of the year. The company has entered the mining sector through Global Coal Minerals Limited and National Resources Private Limited, focusing on the exploration of copper, gold, lead, and zinc assets in Balochistan.
Management expects a strong Kharif season, with Urea application targets estimated at approximately 3.3mn tons and DAP at around 650k tons. On the petroleum segment, management indicated that revenue contribution is expected within the next 2–3 years, subject to successful discoveries from ongoing drilling activities.
Management mentioned that the mining business remains a long term play, with exploration and development typically requiring a timeline of nearly 10 years. The company has established Fatima Capital to manage its strategic and stock market investments. As of March 2026, the portfolio comprised approximately PKR 23bn in equity market investments and PKR 25bn in mutual funds. Regarding the proposed Midwest Fertilizer US project, management clarified that there is currently no financial exposure or investment reflected on the balance sheet, with the project still under evaluation amid evolving global market conditions.
Management highlighted that the PEF project has experienced slight execution delays with full project completion targeted by end of 2026. A major planned turnaround at the FFL site is scheduled for the 4QCY26. Regarding the potential acquisition of PIAA, management stated that the company has sufficient internal resources to fund the investment and does not intend to raise debt for this purpose.
Management also highlighted significant global challenges affecting DAP production, primarily driven by elevated sulfur prices and shortages in phosphoric acid supply. Management noted that the combined value of its four real estate projects exceeds PKR 600bn. Among these, the Silk Islamic Development REIT is a major project with an estimated value of PKR 147bn, in which FATIMA holds a 20% equity stake. The project had its soft launch scheduled in May.
Important Disclosures
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