Lucky Cement expects domestic cement demand to improve in FY27 on the back of housing incentives, infrastructure development and lower financing costs, according to AHL Research following the company's corporate briefing on FY26 results.

AHL Research reported that management views stronger local demand as positive for profitability, given higher margins in domestic sales compared with exports. During FY26, Lucky Cement's local dispatches rose 10.1 per cent YoY to 6.5Mt, while exports declined 8.2 per cent to 3.1Mt. The company maintained its domestic market share at around 15.6 per cent.

According to the research house, Lucky Cement has further strengthened its renewable energy portfolio, with an additional 15MW solar project at its Karachi plant now operational. Total solar capacity has reached 89.3MW, while 28.8MW of wind capacity and waste heat recovery systems collectively meet around 55 per cent of the company's power requirements.

Management also highlighted operational gains from the commissioning of UC3 technology across four production lines, reducing coal consumption and increasing clinker output. Following these improvements, annual domestic cement capacity has been revised upward to approximately 15.6Mt.

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AHL Research noted that Lucky Cement plans to continue its international growth strategy, including a 1.6Mt expansion project in the Democratic Republic of Congo that will double capacity to 3.2Mt. The company said future overseas expansion will remain focused on Africa, subject to suitable opportunities.

The briefing also revealed that market conditions in Iraq are improving, with cement demand and selling prices recovering. Separately, Lucky Motor Corp aims to begin local production of GAC vehicles from the first quarter of FY27, while management expects the government's new auto policy to be unveiled within the next few weeks.

by Abdul R Siddiqi, Pakistan