DG Khan Cement Company Ltd (DGKC) has announced FY26 results on the Pakistan Stock Exchange, posting a Profit After Tax of PKR 11.4bn, up 32 per cent YoY, with EPS at PKR26.08 (US$0.09). Earnings growth was driven by higher local dispatches, improved retention prices, and sharply lower finance costs. Despite strong profitability, the company declared a DPS of PKR 1.00.
Key highlights:
• Net revenue rose 11 per cent YoY to PKR 79.6bn, supported by a 2 per cent increase in dispatches (local +4 per cent, exports –1 per cent). Retention prices climbed 8 per cent YoY to PKR 14,602/ton.
• Gross margin held steady at 26 per cent, despite a 5 per cent drop in coal prices.
• Admin expenses increased 27 per cent YoY to PKR 1.6bn.
• Other income grew 11 per cent YoY to PKR 4.7bn, aided by higher cash balances (PKR 43bn in 4QFY26 vs PKR 24.5bn in 4QFY25).
• Finance costs fell 67 per cent YoY to PKR 1.3bn, reflecting lower interest rates, though total debt rose to PKR 45bn in 4QFY26 from PKR 22bn a year earlier.
• Effective tax rate remained flat at 34 per cent.
AHL Research noted that DGKC’s earnings momentum reflects operational strength and financial efficiency, though the modest dividend signals a cautious payout approach.
By Abdul Rab Siddiqi, Pakistan
