Power Cement FY26 profit surges to Rs3.8bn

August 31, 2026 (MLN):  Power Cement Limited (PSX: POWER) reported an extraordinary 4.6x (364%) surge in its net profit for the fiscal year ended June 30, 2026, reaching Rs3.78bn compared to Rs815m in the preceding year.

Reflecting this explosive profitability, basic earnings per share (EPS) surged more than six-fold to Rs2.86 (diluted EPS of Rs2.72), up from Rs0.44 in FY25.

The primary drivers behind the financial expansion were higher clinker dispatches, better market price realization, expanded gross margins, and substantial debt-servicing relief.

Total cement and clinker dispatches increased by 7.49% to 2.56 million tons, fueled by a 31.21% boom in clinker exports (896,510 tons) that comfortably offset a dip in cement exports.

Clinker production grew 13.38% to 2.42 million tons, boosting capacity utilization to 75% (up from 67% in FY25).

Consequently, net revenue grew by 15% year-on-year to Rs33.98bn. With the cost of sales rising by just 4% to Rs21.89bn supported by the commissioning of a new 7.5 MW wind power project gross profit expanded 44% to Rs12.09bn compared to Rs8.40bn in FY25.

On the operational front, overheads expanded to support commercial outreach and distribution.

Selling and distribution expenses rose 21% to Rs3.65bn, administrative expenses grew 32% to Rs700.67m, and net other expenses increased 53% to Rs309.75m.

However, a 94% drop in impairment losses on financial assets (Rs2.48m) helped shield core gains, pushing profit from operations up by 61% to Rs7.43bn.

Below the operating line, Power Cement gained massive relief from corporate deleveraging and lower interest rates.

Net finance costs plummeted by 40% to Rs1.83bn (down from Rs3.04bn in FY25), as total debt was reduced to Rs16.3bn from a peak of Rs27.3bn in 2021.

Driven by interest cost savings and operational efficiencies, profit before taxation surged 256% to Rs5.60bn.

The company absorbed a higher taxation charge of Rs1.81bn for the year (up from Rs757.32m in FY25).

Backed by strong top-line growth, clinker export momentum, green energy integration, and a 40% reduction in net finance costs, Power Cement Limited securely closed the fiscal year with its net profit reaching Rs3.78bn.

Looking ahead, cement demand is expected to benefit from a gradual recovery in domestic construction activity, housing initiatives, and infrastructure projects, bolstered by a government GDP growth target of 4.0% for FY-2027 and greater exchange-rate stability.

Timely execution of PSDP allocations will remain critical to converting planned development expenditures into actual construction demand, even as volatile international commodity prices and geopolitical risks pose potential headwinds to energy costs.

To maintain momentum, Power Cement will continue to focus on operational efficiency, disciplined cost control, and leveraging its newly operational 7.5 MW wind power project to optimize its energy mix, while actively targeting export market opportunities to enhance margins and strengthen overall business resilience.

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