Pioneer Cement Ltd (PIOC) recently held an analyst briefing to discuss its FY26 financial results and outlook. According to AKD Securities Ltd., key takeaways include PIOC’s record annual earnings of PKR6.6bn (US$23.86m), up 35 per cent YoY. Revenue rose 16 per cent YoY to PKR38.6bn, driven by an 18 per cent increase in cement sales volumes, while average cement prices rose 2 per cent YoY to PKR12,700t.

AKD Securities noted that net retention stood at PKR15,781t, up 10 per cent YoY, though gross margins eased to 30 per cent from 31.4 per cent due to higher input costs. The company’s fuel mix comprised 95 per cent local coal and 5 per cent imported coal, with an average cost of PKR50,000t.

Average power cost during FY26 was PKR22 per kWh, expected to rise to PKR24–25 per kWh after commissioning a 28.3?MW solar plant in phases, beginning December?2026. The project, with a total capex of PKR2?billion, is projected to yield annual savings of PKR600m.

Management guided that all cement producers are expected to alter their fuel mix by March?2027, with alternative fuels accounting for around seven per cent of total consumption in FY27.

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The brokerage forecasts FY27 EPS at PKR15.7/share, supported by demand recovery and sustained construction activity, and notes that Pioneer Cement currently trades at a 2.5× discount to its swap-implied value, offering an attractive entry point ahead of the merger.

Management expects to complete the merger with MLCF by the end of this year.

by Abdul R Siddiqi, Pakistan