The profitability of Pakistan’s listed cement producers improved during the first half of fiscal year 2026 (1HFY26), according to AHL Research. Sector earnings on the Pakistan Stock Exchange (PSX) rose by 5.9 per cent year-on-year (YoY) to PKR90.6bn (US$324m), compared with PKR85.6bn in 1HFY25.
Industry revenues increased by 6 per cent YoY to PKR484.9bn in 1HFY26, supported by a 9.5 per cent YoY rise in total dispatches to 25.7Mt, up from 23.5Mt in 1HFY25.
Gross margins narrowed to 28.2 per cent, down from 31.9 per cent in the prior-year period. The decline reflects lower retention prices and the unavailability of Afghan coal in the northern region.
Other income grew by 5.6 per cent YoY to PKR19.2bn, largely due to higher dividend receipts, particularly from Lucky Cement.
Finance costs fell sharply by 45.1 per cent YoY to PKR15.4bn, primarily as a result of lower interest rates. This easing of the financial burden helped sustain profitability despite margin compression.
Average cement prices in the north declined by 6.7 per cent YoY to PKR1381 per bag in 1HFY26. In contrast, southern prices rose by 4.1 per cent YoY to PKR1444 per bag, supported by firmer retention prices that enabled improved cost recovery and margin discipline. The decline in the north reflects weaker demand and intensified competition.
Capacity utilisation improved to 60.9 per cent in 1HFY26, up from 55.6 per cent in 1HFY25, in line with stronger dispatch volumes. International coal prices declined by 20.9 per cent YoY during the period, averaging US$87/t.
