Fast Cables Limited (PSX: FCL) was initially registered as a partnership named Fast Cables & Co in 1998. It was later incorporated as a public limited company in 2008. The principal activity of the company is manufacturing and selling of all types of electric wires, cables and conductors. Pattern of Shareholding As of June 30, 2025, FCL has a total of 628.854 million shares outstanding which are held by 6872 shareholders. Directors, CEO, their spouse and minor children have the majority stake of around 79.70 percent in the company followed by local general public holding 14.45 percent shares. Around 1.24 percent of the company’s shares are held by mutual funds and 1.14 percent by Banks, DFIs and NBFIs. The remaining ownership is distributed among other categories of shareholders. Historical Performance (2024-25) The topline and bottomline of FCL picked up in 2024 and then tumbled in 2025. Gross and operating margins of the company considerably improved in 2024 while net margin largely remained intact. In 2025, all the margins fell. The detailed performance review of the period under consideration is given below. In 2024, FCL registered 9.63 percent year-on-year growth in its topline which clocked in at Rs.36,024.05 million. This came on the back of growth in both local and export sales in 2024. Local sales comprised of 98.34 percent of the total sales mix of FCL versus its share of 99.25 percent in the previous year. Cost of sales mounted by 8.63 percent in 2024 due to higher prices of copper and aluminum and also because of elevated energy cost, Pak Rupee depreciation and overall inflation. However, with favorable sales mix, higher sales volume and technological up gradation resulted in 14.24 percent stronger gross profit in 2024 with GP margin clocking in at 18.69 percent versus GP margin of 17.94 percent recorded in 2023. Administrative expense surged by 60.30 percent in 2024 due to higher payroll expense. This was due to the induction of additional human resources which took FCL’s workforce from 1388 in 2023 to 1424 in 2024. Fee & subscription charges also escalated in 2024 due to the listing of the company on the Pakistan Stock Exchange in June 2024. Marketing expense mounted by 26.14 percent in 2024 due to higher salaries of sales force, increased advertisement expense, inspection & testing charges as well as carriage & freight charges incurred during the year. Other expense ticked up by 8.11 percent in 2024 due to higher provisioning done for WWF and WPPF. Other income posted a staggering 395.28 percent growth in 2024 due to higher profit on balance receivable from associates. FCL recorded 13.91 percent improvement in its operating profit in 2024 with OP margin ticking up to 12.46 percent from 12 percent in 2023. Finance cost surged by 30.91 percent in 2024 due to higher discount rate and increased short-term borrowings to meet working capital requirements. Despite massively high outstanding borrowings, gearing ratio posted a marginal growth from 33.21 percent in 2023 to 34.70 percent in 2024 due to increased equity. Net profit progressed by 8.62 percent to clock in at Rs.1887.592 million in 2024. This translated into EPS of Rs.3.68 in 2024 versus EPS of Rs.3.47 recorded in 2023. NP margin slightly ticked down from 5.29 percent in 2023 to 5.24 percent in 2024. In 2025, FCL’s topline dipped by 11.56 percent to clock in at Rs.31,859.42 million. Both local and export sales tumbled during the year. Middle East, which is the main export market for FCL,experienced demand destruction in 2025 due to geopolitical tensions. Gross profit deteriorated by 20.12 percent in 2025 due to softer demand and higher raw material prices, particularly copper and aluminum prices due to their intense demand from energy, technology and infrastructure sectors. GP margin clocked in at 16.88 percent in 2025. Administrative expense tumbled by 18.85 percent in 2025 due to high-base effect as the company incurred listing and PSX fee in the prior year. Payroll expense also slid in 2025 as the company streamlined its workforce from 1424 employees in 2024 to 1264 employees in 2025. Marketing expense nosedived by 2.75 percent in 2025 mainly due to lesser inspection and testing charges incurred. Other expense posted 37.82 percent fall in 2025 due to lesser provisioning for WWF, WPPF and ECL and also because of lower charity and donations. Other expense was completely offset by 71.40 percent stronger other income recorded in 2025 due to realized and unrealized income on short-term investments, higher profit on balance from associates and also because of export rebate. FCL posted 16.27 percent thinner operating profit in 2025 with OP margin falling down to 11.79 percent. Finance cost mounted by 18.32 percent in 2025 due to higher outstanding short-term borrowings. Gearing ratio jumped up to 42.39 percent in 2025. FCL’s net profit decline by 32.52 percent to clock in at Rs.1273.70 million in 2025. This translated into EPS of Rs.2.03 and NP margin of 4 percent in 2025. Recent Performance (1QFY26) FCL kick started FY26 on a robust note with a year-on-year growth of 19.92 percent in its topline which clocked in at Rs.8639.63 million in 1QFY26. One of the factors which buttressed demand during the period was the infrastructure development and repair activities in the flood affected areas of Pakistan. With improved product mix and cost management, the company was able to record 39.10 percent higher gross profit in 1QFY26 with GP margin clocking in at 17.13 percent versus GP margin of 14.77 percent recorded in 1QFY25. Administrative expense surged by 23.39 percent in 1QFY26 seemingly due to higher payroll expense on account of workforce expansion as the company enhanced its production capacity. Marketing expense fell by 7.98 percent in 1QFY26 probably due to less advertising & promotion budget. Higher provisioning done for WWF and WPPF appears to be the cause of a drastic 107 percent spike in other expense in 1QFY26. Other income fell by 55.64 percent during the period apparently due to lower return on investment on account of monetary easing. FCL posted 28 percent stronger operating profit in 1QFY26 with OP margin clocking in at 11.87 percent versus OP margin of 11.12 percent posted in 1QFY25. Finance cost shrank by 25.67 percent in 1QFY26 due to monetary easing. FCL registered net profit of Rs.387.644 million in 1QFY26, up 87.49 percent year-on-year. This translated into EPS of Rs.0.62 in 1QFY26 versus EPS of Rs.0.33 recorded in 1QFY25. NP margin improved from 2.87 percent in 1QFY25 to 4.49 percent in 1QFY26. Future Outlook In anticipation of increased demand from power and renewable energy sectors, the company recently undertook capacity expansion. In order to reduce its dependence on infrastructure spending, FCL is also assuming product diversification targeting export markets and industrial sectors.