Kohat Cement Company Ltd (KOHC) announced its financial results for FY26 on the Pakistan Stock Exchange on September 10, reporting an 8 per cent year-on-year decline in earnings to PKR 10.7bn, compared with PKR 11.6bn in the same period last year, according to a report filed by Ahl Research Ltd.
Result Highlights
In FY26, KOHC’s net sales stood at PKR38.5bn, reflecting a modest three per cent YoY increase. Total dispatches grew by eight per cent YoY, supported by a six per cent YoY increase in local dispatches. However, higher volumes were largely offset by a five per cent decline in retention prices, resulting in a broadly stable topline during the period.
Gross margins declined to 35 per cent in FY26 from 39 per cent in FY25, primarily due to elevated fuel costs amid the unavailability of Afghan coal and a surge in international coal prices. However, gross margins improved to 41 per cent in 4QFY26, which we attribute to lower-cost inventory.
Other income decreased by 12 per cent YoY to PKR4.6bn in FY26. The decline was primarily driven by lower interest rates. Cash and cash equivalents strengthened to PKR 37.2bn in 4QFY26, compared with PKR 28.4bn in 4QFY25 and PKR34.8bn in 3QFY26.
Finance costs declined sharply by 56 per cent year-on-year to PKR0.1bn in FY26, primarily driven by a lower interest rate environment. Total debt increased to PKR 6.3bn in 4QFY26, up from PKR2.3bn in 4QFY25 and down from PKR7.2bn in 3QFY26.
The effective tax rate was 33 per cent in FY26, down from 35 per cent in FY25.
by Abdul R. Siddiqi, Pakistan
