DGKC 9MFY26 profit surges 48%

April 29, 2026 (MLN): D.G. Khan Cement Company Limited (PSX: DGKC) reported a stellar 48% surge in its consolidated net profit for the nine months ended March 31, 2026, recording Rs8.93bn compared to Rs6.05bn in the corresponding period last year.

Reflecting this robust bottom-line expansion, the company's basic and diluted earnings per share (EPS) jumped to Rs19.76 from Rs13.21 in 9MFY25.

The primary driver of this profit expansion was steady top-line growth coupled with a massive reduction in finance costs.

DGKC’s revenue posted an 11% year-on-year increase, rising to Rs66.68bn from Rs60.22bn. The company successfully kept its direct costs in check, with the cost of sales growing at a slower pace of 7%, settling at Rs49.16bn.

Because revenue growth comfortably outpaced direct production costs, the company secured a strong 24% expansion in its gross profit, which climbed to Rs17.52bn from Rs14.09bn in the prior year.

On the operational front, overheads grew steadily. Administrative expenses rose by 27% to Rs1.39bn, and selling and distribution expenses increased by 9% to Rs3.21bn.

The company also faced a 61% spike in other expenses, which jumped to Rs914.14m, and booked a net impairment loss on financial assets of Rs66.07m (a turnaround from a reversal last year). These were partially offset by a 5% increase in other income, which stood at a healthy Rs3.50bn.

The absolute catalyst for DGKC's profit surge below the operating line was a massive 57% drop in finance costs. Debt servicing expenses plummeted to Rs1.52bn from a heavy Rs3.53bn burden in 9MFY25.

Propelled by the expanding gross margins and slashed finance costs, the profit before taxation and levy surged by 47% to Rs14.24bn.

After accounting for a relatively flat statutory levy of Rs455.80m, the profit before income tax stood at Rs13.79bn. The company absorbed a 53% higher taxation expense of Rs4.85bn (up from Rs3.17bn), but the phenomenal pre-tax gains allowed D.G. Khan Cement to securely close the nine-month period with its massive 48% leap in final net profit, settling at Rs8.93bn.

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