DG Khan Cement Company Ltd (DGKC) has reported improved operational and financial performance for FY26, according to a review by AHL Research Ltd. Kiln operational days rose to 771 from 760 in FY25. At the same time, clinker utilization increased to 78 per cent, supported by sustained above-capacity performance at the Hub site. Sales utilisation improved to 82 percent, outpacing industry trends.

Net turnover advanced 10.7 percent to PKR79.6bn (US$285m), driven by higher volumes, stronger pricing, and an improved sales mix. Domestic dispatches grew four per cent, with average selling prices up 2 percent, while exports rose five per cent, aided by a more than 15 per cent increase in clinker export prices. Gross margin strengthened to 26.1 percent from 25.7 per cent, reflecting efficiency gains and cost discipline. Profit after tax reached PKR11.4bn, translating into earnings per share of PKR26.08.

The Board has recommended a cash dividend of PKR1 per share, announced on 27 August 2026, subject to approval at the Annual General Meeting scheduled for 27 October 2026.

Looking ahead, DGKC expects local dispatches to continue recovering, supported by easier financing and gradual construction activity. Reconstruction demand is anticipated to sustain medium-term growth, though regional trade-route disruptions may limit export reliability. Rising royalties and material and labor costs could pressure margins, but the company plans to meet demand using existing capacity rather than committing new capital prematurely.

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The company’s 11,000tpd brownfield expansion at the DG Khan site remains on track and is aimed at improving efficiency and competitiveness. In addition, a 25 MW solar project with a 10MWh battery energy storage system is scheduled to commence generation in March 2027, reducing power costs and carbon intensity.

DGKC’s FY26 performance underscores resilience and operational discipline, positioning the company to benefit from a measured recovery in domestic demand while maintaining flexibility in export markets.

By Abdul Rab Siddiqi, Pakistan