BWCL FY26 profit grows 7%, declares Rs10 dividend

July 23, 2026 (MLN): Bestway Cement Limited (PSX: BWCL) reported a solid 7% increase in its consolidated net profit for the year ended June 30, 2026, recording Rs25.57bn compared to Rs23.86bn in the preceding year.

Alongside the result, the company announced a cash dividend of Rs10 per share.

Reflecting this bottom-line growth, the company's basic and diluted earnings per share (EPS) grew to Rs42.88 from Rs40.02 in FY25.

The profit expansion was achieved despite stagnant top-line growth and compressing core margins. BWCL’s net turnover remained virtually flat, inching up by just 0.5% year-on-year to Rs108.28bn from Rs107.76bn.

Meanwhile, the cost of sales grew at a much faster pace of 8%, reaching Rs75.82bn. Because production costs outpaced revenue generation, the company’s gross profit contracted by 13%, settling at Rs32.46bn compared to Rs37.28bn in the prior year.

On the operational front, overheads were mixed.

The company successfully reduced its selling and distribution expenses by 24% to Rs1.22bn and other operating expenses by 11% to Rs1.58bn. However, administrative expenses surged by a significant 58% to Rs3.27bn. Dragged down by the gross margin compression and higher administrative costs, the operating profit declined by 17% to Rs26.39bn.

Below the operating line, Bestway Cement’s profitability was rescued by its investments and reduced debt servicing.

The absolute catalyst for the company was a robust 35% surge in the "share of profit of equity-accounted investees," which brought in a massive Rs14.55bn compared to Rs10.75bn last year.

Additionally, the company found substantial relief as finance costs dropped by 30%, falling to Rs5.36bn. These positive factors easily absorbed a 63% drop in net finance and other income.

Propelled by the surging associate profits and lower financial charges, the profit before tax remained stable, dipping only 1% to Rs36.13bn.

The company then benefited from a 16% lower income tax expense of Rs10.56bn (down from Rs12.59bn). This lighter tax burden allowed Bestway Cement to securely close the fiscal year with a 7% expansion in final net profit, standing at Rs25.57bn.

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