Bestway Cement Ltd (BWCL) reported earnings of PKR25.8bn (US$93.14m) in FY26, up 8 percent YoY from PKR23.9bn in FY25, according to its analyst briefing reviewed by AKD Securities Limited. The increase was driven by a 3 per cent rise in offtakes, with total dispatches reaching 7.0 million tons. Net revenue grew marginally by 0.5 per cent, while local market share eased to 16.8 per cent from 17.7 percent last year. Capacity utilisation improved to 46 per cent from 44 per cent.

Exports fell sharply by 59 per cent to 0.1Mt due to Afghan border issues. Gross margin declined to 30 per cent from 34.6 percent amid input cost pressures, particularly elevated domestic fuel prices. Financial charges decreased to PKR5.4bn from PKR7.6bn last year, reflecting lower borrowings and reduced interest rates. Profit rose 35 per cent to PKR14.5bn, mainly due to a 39 per cent increase in UBL’s profitability.

BWCL’s coal mix comprises 80 per cent local and 20 per cent imported coal, with around 45 days of inventory. Imported South African coal costs PKR60,000 per tonne, while local high-calorific coal ranges from PKR57,000–60,000 per tonne and low-calorific coal from PKR35,000–40,000 per tonne, with transport from Karachi adding PKR15,000 per tonne. The company’s power mix is 55 percent own generation and 45 per cent grid, with grid power costing PKR32 per unit. Captive solar capacity stands at 115MW, with plans to add solar battery storage.

Advertisement

On the Punjab royalty case, management said proceedings remain ongoing in federal court, with no hearing date confirmed. In a significant diversification move, BWCL announced its entry into Pakistan’s automobile sector through a partnership with China’s Geely Auto Group, planning to introduce EV and hybrid SUV models, with bookings expected by end-2026.

By Abdul Rab Siddiqi, Pakistan