In FY25, Cherat Cement Company Limited (CHCC) reported a record profit of PKR8.7bn, representing a fifty-eight per cent year-on-year increase from PKR5.5 bn in FY24 – the highest in the company’s history, according to a report by analysts at Arif Habib Limited.
Management expects local cement demand to grow by approximately five to seven per cent in FY26.
CHCC’s renewable energy portfolio (solar and waste heat recovery) now stands at around 45MW, following the addition of 9MW of solar capacity during FY25. Management continues to explore further renewable energy expansion, including potential biomass and battery storage solutions.
The company operates three production lines at its Nowshera, KPK plant, with a total capacity of 4.5Mta. Line 3 operated throughout the year, while Line 2 remained partially functional due to load management. Owing to higher gas levies and furnace oil tariffs, CHCC shifted its power generation mix from captive gas to furnace oil and subsequently to grid supply. The average tariff, charged by the Pakhtunkhwa energy development organisation, currently stands at around PKR9 per unit, while the effective all-inclusive rate (including levies and adjustments) is estimated at PKR12-13 per unit.
CHCC holds land for potential 3.5Mta greenfield expansion at DI Khan, along with brownfield capacity at its existing site. With industry utilisation averaging 60-65 per cent, management intends to consider expansion once a sustained recovery in demand is evident.
