DG Khan Cement Co Ltd has reported a strong financial and operational performance for the half-year ending 31 December 2025, marked by a rise in profits and a significant strategic pivot toward diversification. The company recorded sales of PKR40.6bn (US$145.5m), representing a nearly 10 per cent increase over the previous year. This growth was supported by enhanced plant performance, with clinker production efficiency rising to 73 per cent and sales utilisation reaching 85 per cent, which significantly outperformed the broader industry trend.
Improved cost management and a lower interest rate environment helped boost gross margins to 26.9 per cent, resulting in a profit after tax of PKR 5.85bn and earnings per share of PKR13.36. Beyond its financial results, the company is moving forward with major expansion and diversification plans. It has commenced work on a new 11,000 tonnes per day brownfield clinker line at its DG Khan site, which is expected to be the largest single-line facility in Pakistan once operational in 18 months.
In a move to stabilise and diversify its earnings, DG Khan Cement and other Nishat Group entities have also announced their intent to acquire a controlling stake of up to 75.10 per cent in Rafhan Maize Products Co Ltd. The board remains optimistic about the future, citing steady domestic demand and attractive export opportunities as key drivers for long-term growth.
By Abdul Rab Siddiqi, Pakistan
