The Board of Directors of Power Cement Ltd has presented a detailed financial report, including a review of the company's financial and operational performance for the half year ended 31 December 2025.
The company believes that Pakistan’s cement industry showed early signs of recovery in the first half of FY25-26, with domestic dispatches increasing by 13.11 per cent after three years of contraction, supported by higher public-sector development activity and improving private-sector sentiment. This recovery was partially offset by a 3.73 per cent decline in exports, largely due to regional and geopolitical constraints. Looking ahead, cement demand is expected to grow moderately, supported by higher development spending and housing incentives.
During the half-year ended 31 December 2025, the company delivered a great improvement in financial performance compared to the corresponding period last year, reflecting higher dispatch volumes, improved margins, and lower finance costs. Net sales revenue increased by 19 per cent to PKR16.46bn (US$58.8m) from PKR13.82bn. This growth, combined with effective cost management, led to a significant improvement in profitability.
Net finance costs declined substantially by 48 per cent to PKR0.98bn primarily due to lower interest rates, reduced borrowings, and improved financial management. Profit after taxation and levy improved significantly to PKR1661m, up from PKR32m in the corresponding period last year.
The company recorded cement production of 884,626t in the half year ended 31December 2025, up from 794,920t, representing growth of 11.28 per cent during the accounting period.
Future outlook
The company’s strong performance underpins a positive outlook. The cement industry is expected to benefit from higher infrastructure spending, improved private-sector construction activity, and easing financing conditions. While energy costs remain elevated, efficiency measures and lower finance costs are expected to provide relief.
In addition, the company’s 7.5MW wind energy project, being implemented under a rental model similar to the solar project, is progressing as planned and is expected to become operational in the last quarter of FY25-26, further supporting cost optimisation and sustainability objectives.
By Abdul Rab Siddiqi, Pakistan
