Higher sales volume and selling prices boost 9M25 revenue
In 3Q25, revenue grew 23% YoY to QAR 4,440mn. In 9M25, IQCD reported YoY revenue growth of 26% driven by a combination of slightly higher average selling prices and sales volumes.
Higher operating costs and absence of gain weigh on bottom line during 9M25
In 3Q25, net profit grew 20% YoY to QAR 1,415mn. During 9M25, IQCD delivered solid growth in gross profit (+34% YoY), driven by a relatively moderate rise in the cost of sales compared to revenue growth. However, an increase in G&A expenses, a lower share of profit from JVs and associates, and the absence of non-cash gains recognized during 9M24 resulted in a 12% YoY decline in net profit in 9M25.
U Capital view
IQCD continues to deliver one of the highest global operating margins, underpinned by its low, largely fixed feedstock costs. IQCD is advancing its flagship Ammonia-7 project, expected to begin operations in 2026, its first major expansion in over ten years. This high-efficiency blue ammonia plant will replace older units, boost output and support revenue and margin growth in the fertilizer segment. The stock remains favorable for dividend investors, backed by last 5-yr historical payout ratio of >75%. We reiterate our Accumulate rating with a target price of QAR 14.2 per share.