Thatta Cement FY26 profit slips 3% to Rs2bn

November 05, 2026 (MLN): Consolidated profit for the year of Thatta Cement Company Limited (PSX: THCCL) fell 2.90% year-on-year to Rs2.28bn for the year ended June 30, 2026 (FY26), compared with Rs2.34bn in FY25.

Basic and diluted earnings per share (EPS) declined 15.19% to Rs4.80 from Rs5.66 in the preceding year.

Along with the results, the company declared a cash dividend of Rs0.5 per share (25%), payable only to the minority shareholders.

The slight decline came from a more than three-fold jump in finance cost, a new levy and lower other income. Higher sales, a 30% rise in gross profit, lower other expenses and a lower tax charge largely cushioned the impact.

Gross sales grew 21.04% to Rs16.16bn from Rs13.35bn. Sales tax and federal excise duty rose 8.23% to Rs4.23bn from Rs3.90bn, taking net sales up 26.33% to Rs11.93bn from Rs9.44bn.

Cost of sales rose at a slower pace of 24.52% to Rs8.08bn from Rs6.49bn, lifting gross profit 30.33% to Rs3.85bn from Rs2.95bn.

Operating costs showed mixed movement.

Selling and distribution expenses increased 45.08% to Rs66.56m from Rs45.88m, while administrative expenses rose 27.13% to Rs213.51m from Rs167.95m. Other expenses fell 52.06% to Rs129.31m from Rs269.73m. Other income dropped 58.42% to Rs488.00m from Rs1.17bn.

As a result, operating profit grew 7.78% to Rs3.92bn from Rs3.64bn.

Finance cost more than tripled, up 236.06% to Rs681.27m from Rs202.72m, absorbing the operating gain.

Profit before levy and taxation declined 5.68% to Rs3.24bn from Rs3.44bn. The company booked a levy of Rs114.77m, with none last year, taking profit before taxation down 9.01% to Rs3.13bn from Rs3.44bn.

Taxation fell 22.11% to Rs852.47m from Rs1.09bn, which limited the bottom-line decline and left profit for the year at Rs2.28bn.

Copyright Mettis Link News