KOHC FY26 profit softens 8%

September 10, 2026 (MLN): Kohat Cement Company Limited (PSX: KOHC) reported an 8% dip in its consolidated net profit for the fiscal year ended June 30, 2026, recording Rs10.70bn compared to Rs11.58bn in the preceding year.

Reflecting this slight bottom-line compression, basic and diluted earnings per share (EPS) for the year stood at Rs11.64, down from Rs11.97 in FY25.

The primary factor weighing on profitability was gross margin squeeze driven by higher direct manufacturing costs.

Net revenue from contracts with customers grew modestly by 3% year-on-year to Rs38.53bn, up from Rs37.54bn in FY25.

However, cost of sales expanded 10% to Rs24.88bn, causing gross profit to contract by 8% to Rs13.65bn compared to Rs14.89bn in the prior year.

On the operational front, overheads expanded slightly.

Selling and distribution expenses rose 11% to Rs250.43m, administrative and general expenses grew 24% to Rs1.07bn, and other expenses declined 8% to Rs868.28m.

Operating performance was partially supported by a net reversal of Rs17.56m in expected credit loss allowance on trade debts (reversing a loss of Rs44.08m in FY25). Consequently, operating profit fell 10% to Rs11.47bn.

Below the operating line, KOHC absorbed a 12% drop in "other income" (Rs4.65bn), though this was cushioned by a significant 56% reduction in finance costs, which fell to Rs153.44m (down from Rs349.91m in FY25).

This brought profit before taxation to Rs15.93bn (down 10% from Rs17.69bn in FY25, after absorbing statutory levies of Rs40.69m).

The company absorbed a 14% lighter corporate taxation charge of Rs5.23bn for the year (down from Rs6.11bn in FY25). Supported by tax relief and lower debt servicing charges, Kohat Cement Company Limited securely closed the fiscal year with a net profit of Rs10.70bn.

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