KOHC to commission 28.5MW captive power plant by FY26

November 12, 2025 (MLN): Kohat Cement Company Limited (PSX:KOHC) is set to commission a 28.5MW coal-fired captive power plant by the end of FY26, with contractors already engaged and total project cost estimated at Rs8 billion.

This addition aims to enhance operational efficiency and reduce dependency on the national grid, highlighted in the company’s corporate briefing.

Alongside, KOHC has already installed a 15.3MW solar power plant and plans to expand solar capacity to 20MW, strengthening its renewable energy footprint.

Management also shared that development work is ongoing at its Greenfield Cement Line in Khushab, with plant and machinery procurement contingent upon a sustained improvement in domestic cement demand and economic stability.

The company expects the cement industry to post double-digit growth in FY26, supported by a low base effect, improved macroeconomic indicators, and a revival in private construction activity.

In terms of energy efficiency, KOHC continues to maintain one of the lowest power costs in the North region. The company’s average power cost stood at Rs23/kWh in FY25, down from Rs28/kWh a year earlier, reflecting lower reliance on the grid and increased use of waste heat recovery (WHR) and solar energy.

The company’s fuel mix in FY25 included 49% local and 51% imported coal, averaging Rs 40.6k/ton, while the current inventory is valued around Rs41–42k/ton.

Financially, the company reported strong profitability in FY25, with earnings rising 30% YoY to Rs11.6 bn (EPS: Rs12.6) compared to Rs8.9 bn (EPS: Rs9.7) in FY24, mainly due to improved margins and higher other income.

Despite a 3% YoY decline in sales to Rs37.5 bn on lower offtakes, profitability was supported by an 8% YoY increase in retention prices to Rs16,121/ton and a reduction in COGS/ton to PKR 9,798.

In 1QFY26, earnings stood at Rs2.9 bn (EPS: Rs3.2) versus Rs3.4 bn (EPS: Rs3.51) in the same period last year, as declining retention prices offset higher dispatches.

With a robust balance sheet, strategic energy diversification, and ongoing capacity enhancements, KOHC is well-positioned to sustain profitability and capitalize on the expected recovery in cement demand during FY26.

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