Cherat Cement Co Ltd (CHCC) posted its financial results for the second quarter of FY26 on the Pakistan Stock Exchange (PSX) on 18 February, reporting a net profit after tax (NPAT) of PKR2bn (US$7.13m). This marks an 11 per cent YoY decline and remained flat QoQ.
According to IMS Research, the result was supported by stronger-than-expected gross margins, which held steady at 36 per cent, easing market concerns around margin pressure from higher fuel costs following the Afghan border closure.
Net sales came in at PKR9.4bn, down eleven per cent YoY, mainly due to lower retention prices (averaging PKR14,781/t, down nine per cent YoY) and a two per cent decline in volumes. Exports were hit hardest, falling 71per cent YoY due to the border closure.
On the cost side, finance costs declined sharply by 55 per cent YoY to PKR102m, driven by a 55 per cent reduction in total borrowings, now at PKR6.2bn.
Despite the disruption to exports and the import of lower-cost Afghan fuel, CHCC continues to demonstrate strong profitability and retains its position as a low-cost producer, supported by its strategic location in Khyber Pakhtunkhwa (KPK), where royalty rates on raw materials are lower than in Punjab.
By Abdul Rab Siddiqi, Pakistan
