Thatta Cement Building Solid Ground

February 26, 2026 (MLN): Thatta Cement Company Limited (PSX: THCCL) has reported a 13.3% increase in net profit for the half-year ended December 31, 2025, reaching Rs1.28 billion.

While the bottom line shows growth, the company’s core manufacturing business faced a challenging environment, with net sales dropping by 6% to PKR 3.6 billion.

The company’s Gross Profit took a nearly 20% hit as the cost of sales remained high despite falling revenue.

This contraction in manufacturing margins was further compounded by a 600% spike in finance costs, which jumped to Rs193.5 million, and an 83% rise in administrative expenses.

Under normal circumstances, these factors would have led to a sharp decline in earnings.

However, Thatta Cement managed to pull a rabbit out of the hat thanks to its Other Income, which soared by 60.7% to reach a staggering Rs1.25 billion.

This non-core revenue stream acted as a vital safety net, allowing the company to maintain an operating profit of Rs1.9 billion.

Combined with a significantly lower tax expense compared to the previous year, the company successfully pushed its Earnings Per Share (EPS) up to Rs3.02.

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