Bestway Cement Limited has delivered a resilient financial performance for the year ended June 30, 2026, with profit after tax rising to Rs25.8 billion despite intense competition, geopolitical tensions and higher operating pressures.
Bestway Cement Limited maintained its position as Pakistan’s leading cement producer in FY2026, navigating a challenging economic and industry environment while improving its bottom-line performance.
According to the company’s Annual Report 2026, gross turnover increased 2.3% to Rs172.3 billion during the year, compared with Rs168.5 billion in FY2025. Net turnover also edged up to Rs108.3 billion from Rs107.8 billion a year earlier, supported mainly by higher sales volumes that offset the impact of lower cement prices amid competitive market conditions.
Profitability improves despite lower gross profit
Bestway Cement reported gross profit of Rs32.5 billion for FY2026, down from Rs37.3 billion in the previous year. However, lower financial charges provided significant support to the bottom line. Finance costs declined to Rs5.4 billion from Rs7.6 billion, reflecting lower borrowings and reduced interest rates.
As a result, unconsolidated profit before tax stood at Rs36.4 billion, broadly in line with Rs36.5 billion in FY2025, while profit after tax increased to Rs25.8 billion from Rs23.9 billion. Earnings per share also improved to Rs43.20 from Rs40.02.
The company’s six-year financial data further shows that its net profit margin reached 23.79% in FY2026, compared with 22.15% in FY2025, while return on equity improved to 19.24%.
Cement sales continue to grow
Bestway’s operational performance remained encouraging. Total cement and Xtreme Bond sales reached approximately 7.04 million tonnes during FY2026, representing growth of 2.9% over the previous year. Local cement dispatches increased by 3.9%, allowing the company to retain its position as the country’s largest cement producer and market leader.
The broader cement industry also experienced a recovery during the year. Domestic dispatches increased 9.5% to 41.5 million tonnes, although exports declined 2.2% to 9.0 million tonnes. The report attributed the decline in exports largely to the Afghanistan border closure and geopolitical developments.
Shareholders to receive 400% dividend
Bestway Cement is also maintaining a strong payout for shareholders. The Board recommended a final cash dividend of Rs10 per share, taking the total dividend for FY2026 to 400%, compared with 320% in the previous year.
The company’s 33rd Annual General Meeting is scheduled for August 31, 2026, where shareholders will consider the financial statements and the proposed final dividend.
Automotive expansion remains a key development
Alongside its core cement business, Bestway is preparing to expand into the automotive sector through its subsidiary, Bestway Automotive (Private) Limited.
The subsidiary was incorporated in September 2025 and has acquired an automobile assembly line, including land, buildings, plant, machinery, inventories and other operating assets. However, commercial manufacturing operations had not commenced by June 30, 2026.
Bestway Automotive has proposed increasing its paid-up capital through the issuance of 599.99 million right shares at Rs10 each, involving Rs6 billion. Bestway Cement’s shareholders will decide whether the parent company should subscribe to the rights issue at the upcoming AGM.
If Bestway Cement declines the rights offer and the shares are subsequently subscribed by a third party, Bestway Automotive could cease to remain a subsidiary of the cement company.
Focus on efficiency and sustainability
The company continues to emphasize cost efficiency, renewable energy and environmental initiatives. Bestway says a significant portion of its energy requirements is met through green and renewable sources. It has also implemented air-cooled condenser systems that have reduced industrial water requirements by about 80%, while its Chakwal and Kallar Kahar plants meet 100% of their industrial water requirements through rainwater harvesting.
Bestway also spent more than Rs1.6 billion on corporate social responsibility initiatives during FY2026, supporting education, healthcare, vocational training, environmental conservation and local employment.
Cautiously optimistic outlook
Looking ahead, Bestway expects Pakistan’s cement market to gradually recover as domestic economic conditions improve, interest rates decline and construction activity strengthens. At the same time, the company remains alert to risks from fuel prices, energy tariffs, regional tensions, supply-chain disruptions and export-related challenges.
With its large production base, strong market position and focus on cost efficiency, Bestway Cement enters FY2027 from a position of relative strength. The company’s improved earnings, higher dividend payout and planned diversification into automotive manufacturing could remain important developments for investors in the year ahead.
