Flying Cement delivers 5.6x profit growth in Q1FY26

October 28, 2025 (MLN): Flying Cement Company Limited (PSX: FLYNG) reported a profit after taxation of Rs130.66m for the quarter ended September 30, 2025, representing a remarkable increase of 455.95% from Rs23.5m in the corresponding quarter last year.

Earnings per share surged 533.33% to Rs0.19 compared to Rs0.03 in Q1FY26, showing exceptional bottom-line growth.

Gross sales more than doubled, rising 131.52% year-on-year to Rs5.4bn from Rs2.33bn, demonstrating robust demand for cement products during the quarter.

Sales tax and federal excise duty increased 142.98% to Rs1.9bn from Rs783.49m, in line with the elevated sales volume.

Net sales grew 125.71% to Rs3.49bn from Rs1.55bn in Q1FY26, driven by strong market demand and improved pricing dynamics. Cost of sales increased 101.61% to Rs2.93bn from Rs1.46bn in the prior year quarter.

Gross profit surged 504.56% to Rs559.78m against Rs92.59m in the same period last year, with the gross margin expanding significantly to 16.0% from 6.0% in Q1FY26, indicating substantially improved operational efficiency and better cement pricing realizations.

Distribution expenses increased 16.33% to Rs8.09m from Rs6.95m, showing controlled logistics costs despite higher sales volumes.

Administrative expenses rose 119.63% to Rs48.48m from Rs22.07m, primarily due to inflationary pressures and business expansion activities.

The company recorded an operating profit of Rs503.21m, a dramatic 691.63% increase compared to Rs63.57m in Q1FY26, showcasing the strong operational leverage of the cement business.

Finance costs surged 650.09% to Rs155.64m from Rs20.75m in the previous year, showing higher borrowing levels and elevated interest rates in the current financial environment.

Profit before taxation stood at Rs347.57m compared to Rs42.82m in Q1FY26, representing an impressive growth of 711.76%.

Taxation charges increased significantly to Rs216.91m from Rs19.32m, resulting in an effective tax rate of 62.4% compared to 45.1% in the prior period.

Flying Cement Company Limited concluded Q1FY26 with a net profit of Rs130.66m, delivering a net profit margin of 3.7% compared to 1.5% in Q1FY25.

Total comprehensive income for the period stood at Rs130.66m, up 455.95% from Rs23.5m last year.

The exceptional performance was driven by more than doubling of sales revenues, dramatic gross margin expansion showing favorable cement pricing and operational efficiencies, and strong operating leverage despite increased finance costs.

The company's ability to translate robust top-line growth into substantial bottom-line improvement positions Flying Cement favorably in Pakistan's recovering construction and infrastructure sector.

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