DGKC FY26 profit jumps 25%

MG News | August 27, 2026 at 04:08 PM GMT+05:00

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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.

STATEMENT OF PROFIT OR LOSS FOR THE YEAR ENDED JUNE 30, 2026 (Rs.000)
Description	2026	2025	change %
Revenue from contracts with customers - net	87,608,436	78,633,908	11.4%
Cost of sales	(65,030,018)	(58,834,577)	10.5%
Gross profit	22,578,418	19,799,331	14.0%
Administrative expenses	(1,929,842)	(1,488,442)	29.7%
Selling and distribution expenses	(4,178,067)	(3,879,054)	7.7%
Net impairment reversal / (loss) on financial assets	83,872	(6,920)
Changes in fair value of biological assets	471,739	469,855	0.4%
Other expenses	(1,281,241)	(971,273)	31.9%
Other income	4,958,929	5,050,139	-1.8%
Finance cost	(1,952,564)	(4,288,179)	-54.5%
Profit before levy and income tax	18,751,244	14,685,457	27.7%
Levy	(702,103)	(630,520)	11.4%
Profit before income tax	18,049,141	14,054,937	28.4%
Taxation	(5,875,089)	(4,297,247)	36.7%
Profit for the year	12,174,052	9,757,690	24.8%
Earnings per share - basic and diluted (Rupees)	26.98	21.09	27.9%