The robust performance was driven by higher cement dispatches, increased other income, improved profit margins, and reduced finance costs. Net sales rose to PKR 187.31 billion, marking a 15% YoY increase. This growth was supported by improved retention prices, a 17.5% increase in domestic dispatches, and a 20% rise in export volumes. Gross profit expanded 13% YoY, benefiting from lower international coal prices, a more efficient fuel mix, and greater use of alternative fuels and power sources.
Domestic cement dispatches grew 17% YoY to 9.508 million tonnes (Mt) in 1QFY26, compared to 8.126 Mt in the same period last year, and up 3% QoQ. Export dispatches reached 2.588 Mt, reflecting a 20% YoY increase, although slightly down seven percent from the previous quarter.
The report emphasized that improved margins were supported by strategic cost management, including optimized fuel sourcing and enhanced operational efficiency. Companies also benefited from increased other income streams, further boosting profitability despite fluctuations in raw material costs.
The strong first-quarter performance reflects resilience in both domestic and export markets, with cement demand remaining stable across key regions in Pakistan. Local infrastructure projects, urban development, and housing initiatives contributed to higher domestic dispatches, while international shipments supported by competitive pricing helped maintain export growth.
Overall, the results underscore the cement sector’s robust fundamentals, efficient operations, and its ability to adapt to changing market conditions. The combination of higher sales, controlled costs, and strategic dispatch planning has positioned the industry for continued growth in the remaining quarters of FY26.
AHCML Research’s findings suggest that Pakistan’s cement industry is well-placed to sustain profitability, with both domestic consumption and exports contributing to revenue expansion and stable margins.
