Dewan Cement H1 FY26 loss more than doubles

February 26, 2026 (MLN): Dewan Cement Limited (PSX: DCL) reported a net loss of Rs611.80m for the half year ended December 31, 2025, more than doubling from the Rs297.47m loss recorded in the same period last year.

The company's loss per share more than doubled to Rs1.26 from Rs0.61 in the corresponding period of the previous year.

The company's net turnover grew 17% to Rs11.70bn from Rs9.97bn, showing improved revenue generation. However, gross turnover gains were significantly undermined by surging input costs.

Cost of sales climbed 19% to Rs11.26bn from Rs9.43bn, outpacing revenue growth and heavily squeezing top-line margins.

This resulted in a gross profit of Rs436.63m, down 20% from Rs543.23m in the prior period.

Consequently, the gross profit margin contracted to 3.73% from 5.45% in H1 FY2025, highlighting severe pressure from escalating production costs relative to net revenue generation.

The net loss margin deteriorated to -5.23% from -2.98% in the same period last year.

On the operating side, distribution costs surged 62% to Rs109.72m from Rs67.77m, and administrative expenses rose 25% to Rs701.43m from Rs562.85m.

Other operating expenses, however, dropped 55% to Rs2.61m from Rs5.83m.

Hit by the lower gross profit and higher operating expenses, operating loss more than quadrupled to Rs377.13m from Rs93.22m in H1 FY2025.

Other income decreased 20% to Rs9.47m from Rs11.85m.

Finance costs remained broadly flat, edging up just 0.42% to Rs6.39m from Rs6.36m, offering no meaningful relief to the bottom line.

Loss before income tax and levies more than quadrupled to Rs374.04m from Rs87.73m in the prior period.

After levies of Rs146.24m up 17% from Rs124.75m loss before income tax more than doubled to Rs520.28m from Rs212.48m.

The company recorded a deferred tax expense of Rs91.52m, up 13% from Rs81.01m, while no current tax was payable in the period compared to Rs3.97m in the same period last year.

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