Power Cement turns around with 51x HY26 profit jump

February 12, 2026 (MLN): Power Cement Limited (PSX: POWER) reported a profit after tax of Rs1.66 billion for the half year ended December 31, 2025, marking a sharp turnaround from a profit of Rs32.37 million in the same period last year.

Earnings per share (EPS) clocked in at Rs1.25 compared to a loss per share of Rs0.15 in HY25, reflecting a significant improvement in overall profitability.

Net revenue from contracts with customers rose 19.09% year-on-year (YoY) to Rs16.46bn, up from Rs13.82bn in the corresponding period last year, supported by improved dispatches and better pricing dynamics in the cement sector.

Cost of sales increased modestly by 4.00% YoY to Rs10.48bn.

As revenue growth outpaced cost escalation, gross profit surged 59.66% to Rs5.98bn compared to Rs3.75bn in HY25.

Gross margins expanded significantly to approximately 36.3% from 27.1% last year, showing improved cost absorption and favorable operational efficiencies.

On the expense side, selling and distribution expenses rose 18.92% YoY to Rs1.63bn, while administrative expenses increased 32.31% to Rs383.58m.

Impairment loss on trade receivables declined 50.22% to Rs5.98m, indicating improved receivables management.

Meanwhile, other expenses swung to Rs238.93m compared to other income of Rs26.29m last year, partially offsetting operational gains.

Despite higher operating expenses, strong gross profitability drove operating profit up 77.18% YoY to Rs3.73bn, compared to Rs2.10bn in the same period last year.

On the financial front, net finance cost declined 48.17% YoY to Rs979.18m, as finance cost dropped 47.65% to Rs996.51m.

The substantial reduction in debt servicing burden provided significant support to bottom-line growth.

Profit before taxation and levy stood at Rs2.75bn, compared to Rs214.43m in HY25.

After accounting for levy of Rs206.35m, profit before taxation reached Rs2.54bn, registering a remarkable YoY increase.

After accounting for levy of Rs206.35m, profit before taxation reached Rs2.54bn, compared to Rs168.10m in the same period last year showing an increase of more than 15 times year-on-year.

Taxation expense rose to Rs880.24 million, translating into an effective tax rate of approximately 34.6%.

Consequently, profit after tax settled at Rs1.66bn for HY26, compared to Rs32.37m in the same period last year showing an increase of more than 51 times, emphasizing Power Cement’s strong operational recovery, improved margins, and significantly lower finance costs during the period.

Copyright Mettis Link News