LUCK FY26 profit jumps 14%

August 10, 2026 (MLN): Lucky Cement Limited (PSX: LUCK) reported a 14% increase in its consolidated net profit for the fiscal year ended June 30, 2026, reaching Rs96.46bn compared to Rs84.50bn in FY25.

Alongside the financial results, the company announced a cash dividend of Rs5 per share, which is the highest ever dividend and profit.

Reflecting this solid bottom-line growth, consolidated basic and diluted earnings per share (EPS) attributable to the owners of the holding company rose to Rs60.78 from Rs52.53 in FY25.

The growth in earnings was driven by a strong top-line performance across key industrial sectors and a sharp reduction in group finance costs.

Gross revenue surged by 15% year-on-year to Rs645.93bn, while net revenue after sales tax, federal excise duty, and rebates reached Rs516.36bn (up 14% from Rs454.06bn).

Despite direct production costs growing by 18% to Rs385.05bn, Lucky Cement secured a 3% expansion in gross profit, which stood at Rs131.31bn.

Macroeconomic Domestic Cement Performance

Domestic Cement Outperformance: Total national cement sales reached 50.5 million tons (+7.0% YoY).

Lucky Cement outperformed the domestic industry growth rate (+9.3%) by posting a 10.1% increase in local volumes (rising to 6.5 million tons) due to an expanded market footprint.

Export Strategy Rationalization: Company exports fell 8.2% to 3.1 million tons due to border closures with Afghanistan and strategic margin prioritization over volume. Total company dispatches grew 3.5% overall.

Plant Capacity Upgrades: LUCK successfully commissioned UTIS (UC3) technology on all four lines at its Karachi plant, expanding local cement capacity by 300,000 tons to 5.35 MTPA. Total group solar capacity will hit 89.3 MW in 1Q FY 2027 following a 15 MW Karachi plant addition.

Segment-Wise Performance & Joint Ventures

Foreign Cement Operations: Grinding operations in Samawah, Iraq (0.65 MTPA) commenced commercial operations in November 2025.

Joint venture operations in the Democratic Republic of Congo (DRC) via Nyumba Ya Akiba (NYA) approved a 1.6 MTPA expansion to boost total capacity to 2.91 MTPA, with construction starting in 1Q FY 2027.

Polyester, Soda Ash & Chemicals (Lucky Core Industries - LCI): LCI turnover dropped 6% to Rs113.2bn, dragging operating profit down 18% to Rs14.7bn.

Weak demand and low-cost imports hit Polyester (-74% operating profit) and Soda Ash (-33%), while Animal Health (+20%) and Pharmaceuticals (+16%) delivered strong results.

A new veterinary medicine plant opened in Sheikhupura on March 30, 2026.

Automobiles & Smartphones (Lucky Motor Corporation - LMC): LMC benefited from a 43% volume rebound in auto sales and entered a new partnership with GAC Group for New Energy Vehicles (NEVs). Smartphone imports jumped 23% in value terms, with LMC pivoting focus toward affordable models.

Mining (National Resources Pvt Ltd - NRL): The 33.33% JV entity acquired two additional leases in Balochistan, taking its portfolio to five leases across copper-gold, lead-zinc, and antimony.

Power (LEPCL): The 660 MW Thar coal plant maintained over 8.1 million safe man-hours, progressing towards 100% indigenous coal integration with the SECMC Phase-III mine expansion and Thar Rail Link network.

Financial & Tax Breakdown

On the operational level, administrative costs rose 14% to Rs8.58bn, while other expenses grew to Rs8.01bn.

However, these outlays were strongly buffered by a 32% jump in other income (Rs20.97bn).

Supported by Rs16.75bn in share of profit from joint ventures and associates, pre-tax profit grew 10% to Rs116.19bn.

After absorbing a 7% lower taxation charge of Rs19.73bn, Lucky Cement Limited securely closed FY 2026 with a final net profit of Rs96.46bn.

Copyright Mettis Link News