PACRA Maintains the Entity Ratings of Fatima Fertilizer Company Limited

Fatima Fertilizer Company Limited (“FFCL” or “the Company”) is a prominent player in Pakistan’s oligopolistic fertilizer industry, supported by a strong market position, diversified product portfolio, and well-established operational infrastructure. The assigned ratings are underpinned by the Company’s strong business fundamentals and demonstrated ability to navigate evolving industry dynamics. FFCL continues to reinforce its competitive positioning through the strategic integration of AI-driven solutions and a prudent diversification strategy through investments in new ventures across multiple sectors, supporting long-term sustainable growth. The Company’s nationwide footprint is supported by an extensive distribution network spanning 62 districts across Pakistan, complemented by seven company-owned Sarsabz Agri Marts that provide farmers with direct access to quality agricultural inputs and integrated agronomic advisory services. The product portfolio comprises Sarsabz Urea, Sarsabz DAP, Sarsabz Nitrophos, Sarsabz Calcium Ammonium Nitrate, Bubbersher Urea and Bubbersher DAP. Over the years, the Company has exhibited a sustained growth trajectory, underpinned by consistent expansion in its revenue base. On a standalone basis, the Company achieved a topline of PKR 27.92bln during 1QCY26 (1QCY25: PKR 42.19bln), following the strategic carve-out of the Multan Plant into its wholly owned subsidiary, Pakarab Fertilizers Limited, as of January 2025. Although inflationary pressures continued to elevate operating expenses, the same was offset by the monetary easing cycle. Furthermore, a healthy revenue stream from the Company's strategic investment portfolio and equity market investments through Fatima Capital Limited provided meaningful support to the bottom line. Consequently, the Company reported a PAT of PKR 4.18bln during 1QCY26 (1QCY25: PKR 8.0bln).
FFCL continues to strengthen its business profile through a well-defined diversification strategy, marked by prudent investments across emerging sectors and strategic growth avenues. As part of its sustainability and funding initiatives, FFCL entered into a strategic partnership with the International Finance Corporation (IFC) to establish a US dollar-denominated revolving liquidity facility. Furthermore, the Company has expanded into the mining and minerals sector through its investment in Globacore Minerals, in collaboration with Mari Minerals. FFCL has also entered the exploration and production (E&P) sector through its wholly owned subsidiary, Fatima Petroleum Company Limited (FPCL). In this regard, FPCL has executed farm-out agreements with Mari Energies, Orient Petroleum Inc., Hycarbex American Energy Inc., and Turkish Petroleum Overseas Company (TPOC), covering four onshore and two offshore exploration blocks. Additionally, FFCL is a member of the successful consortium for the acquisition of a majority equity stake in Pakistan International Airlines Corporation Limited (PIACL). Complementing these strategic initiatives, FFCL became the first private-sector entity in Pakistan to adopt the UNDP SDG Impact Framework, integrating sustainability considerations into its strategic and operational framework. In collaboration with UNDP, the Company also developed an SDG-aligned sustainability framework and published its inaugural SDG Impact Report. Collectively, these initiatives are expected to diversify the Company's earnings streams, enhance its financial resilience, broaden its business footprint, and support its long-term growth prospects.
The ratings are dependent on the Company's ability to sustain its margins and healthy coverages while maintaining the adherence to strong financial discipline. The realization of synergies after the operational restructuring plays a pivotal role.

About the Entity
Fatima Fertilizer Company Limited (“FFCL” or “the Company”) is a joint venture between two prominent business conglomerates, Fatima Group and Arif Habib Group. The principal activity of the Company is manufacturing, producing, buying, selling, importing and exporting fertilizers and chemicals.