Lucky Cement reported a robust performance in 1QFY26, with renewable energy meeting around 50 per cent of its total power requirements during the quarter. According to the company’s analyst briefing, unconsolidated profit surged 123 per cent YoY to PKR14.62bn, translating into an EPS of PKR9.98.
The strong earnings growth was driven by higher cement demand and a sharp rise in other income, which increased to PKR9bn from PKR3.3bn in the same period last year. The company’s weighted-average electricity cost stood at PKR32.5 per kilowatt-hour.
Domestic cement dispatches grew by 17.7 per cent YoY to 1.6Mt, lifting Lucky Cement’s market share to 38.1 per cent. Export volumes edged up 1 per cent to 0.83Mt. The average cement retention price was approximately PKR 15,200 per tonne. During the quarter, the northern plant used 20 per cent imported coal, while the southern plant operated entirely on imported coal.
Net revenue rose 14 per cent YoY to PKR 33.9bn, although gross profit declined marginally by one per cent due to a revenue reclassification.
Looking ahead, Lucky Cement is targeting growth in markets across Africa, the US, and Brazil, with a new grinding plant in Iraq now operational. The company has no immediate expansion plans in Pakistan, while potential investment in the mining sector is estimated between US$500m and US$1bn. Management expressed optimism around industry consolidation and aims to strengthen its market position through Lucky Motors, while maintaining a cautious stance on new partnerships and any potential bidding for PIA.
By Abdul Rab Siddiqi, Pakistan
