D.G. Khan Cement profit surges 66% in 1HFY26

February 23, 2026 (MLN): D.G. Khan Cement Company Limited (PSX:DGKC) reported a net profit of Rs5.85bn for the half year ended December 31, 2025,  a 66% increase from the Rs3.52bn profit recorded in the same period last year.

The company's earnings per share rose to Rs13.36 from Rs8.04 in the corresponding period of the previous year.

The cement manufacturer's revenue increased 10% year-on-year to Rs40.59bn from Rs36.99bn, demonstrating solid top-line growth.

Cost of sales rose 4% to Rs29.67bn from Rs28.55bn, resulting in a gross profit of Rs10.92bn, up 29% from Rs8.45bn in the prior period.

The gross profit margin improved significantly to 26.9% from 22.8% in H1 FY2025, indicating enhanced operational efficiency and better cost management.

The net profit margin stood at 14.4% compared to 9.5% in the same period last year, reflecting the company's substantially improved profitability.

Administrative expenses increased 24% to Rs780.3m from Rs630.8m, while selling and distribution expenses declined marginally by 1% to Rs1.95bn from Rs1.96bn.

Other expenses increased 2.2 times to Rs544.2m from Rs242.5m. Other income rose modestly by 2% to Rs2.19bn from Rs2.16bn.

Finance costs declined sharply by 72% to Rs735m from Rs2.64bn, providing substantial relief to the bottom line. This dramatic reduction in finance costs emerged as a major contributor to the strong profit growth.

Profit before income tax stood at Rs8.74bn, representing a 78% increase from Rs4.92bn in the corresponding period last year.

The company recorded a taxation expense of Rs2.89bn, up 2.1 times from Rs1.39bn, though the higher tax charge did not materially constrain the strong profit growth.

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