DGKC FY26 profit jumps 25%

August 27, 2026 (MLN): D.G. Khan Cement Company Limited (PSX: DGKC) reported a 25% increase in its consolidated net profit for the fiscal year ended June 30, 2026, reaching Rs12.17bn compared to Rs9.76bn in the preceding year.

Alongside the financial results, the board recommended a final cash dividend of Rs1 per share.

Reflecting this bottom-line momentum, basic and diluted earnings per share (EPS) for the year improved to Rs26.98, up from Rs21.09 in FY25.

The primary catalyst behind the performance was top-line revenue expansion combined with a sharp 54% reduction in finance charges.

Net revenue from contracts with customers grew by 11% year-on-year to Rs87.61bn, up from Rs78.63bn in FY25.

Although cost of sales increased by 11% to Rs65.03bn, higher turnover allowed gross profit to expand by 14% to Rs22.58bn compared to Rs19.80bn in the prior year.

On the operational front, overheads expanded to support market outreach.

Administrative expenses rose 30% to Rs1.93bn, selling and distribution expenses grew 8% to Rs4.18bn, and other expenses surged 32% to Rs1.28bn.

These outlays were partially offset by a positive reversal of Rs83.87m in impairment on financial assets (reversing a loss of Rs6.92m last year) and steady gains from biological asset fair value adjustments (Rs471.74m).

Supported by strong "other income" of Rs4.96bn, pre-finance operating performance remained robust.

Below the operating line, DGKC gained substantial relief from reduced debt-servicing burdens.

Finance costs plummeted by 54% to Rs1.95bn (down from Rs4.29bn in FY25). Driven by interest cost savings and core top-line growth, profit before income tax jumped 28% to Rs18.05bn (after absorbing statutory levies of Rs702.10m).

The company absorbed a 37% higher corporate taxation charge of Rs5.88bn for the year (up from Rs4.30bn in FY25).

Supported by 11% revenue growth, 14% gross margin expansion, and a 54% cut in debt-servicing costs, D.G. Khan Cement Company Limited securely closed the fiscal year with its net profit reaching Rs12.17bn.

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