AHCML Research has reported a robust financial performance for Pakistan’s cement industry in the 1QFY26, with selected companies listed on the Pakistan Stock Exchange (PSX) showing a 24 per cent QoQ increase in profit after tax.
According to the report, 15 listed cement firms collectively recorded a profit after tax (PAT) of PKR37.10bn (US131.4m) reflecting a 54 per cent YoY and 24 per cent QoQ rise. The strong results were driven by higher cement dispatches, increased other income, improved margins, and lower finance costs.
Net sales rose to PKR187.31bn, marking a 15 per cent YoY increase, supported by improved retention prices, a 17.5 per cent rise in local dispatches, and a 20 per cent jump in export volumes. Gross profit also grew by 13 per cent YoY, attributed to lower international coal prices, a more efficient fuel mix, and greater use of alternative fuels and power sources.
Local dispatches climbed 17 per cent YoY to 9.508Mt in 1QFY26, compared to 8.126Mt in the same period last year, and up three per cent QoQ. Export dispatches reached 2.588Mt, up 20 per cent YoY but down seven per cent compared to the previous quarter.
Outlook
The outlook for the cement sector remains positive, with expectations of sustained profitability supported by higher dispatches, improving local demand, easing inflation, lower interest rates, and the government’s new construction policy.
By Abdul Rab Siddiqi, Pakistan
