Power Cement Limited Posts Strong Financial Results for First Quarter of FY2026-27

Power Cement Limited has reported a significant improvement in its financial performance for the first quarter ended September 30, 2026, with profit after taxation increasing by more than 30% compared with the corresponding period last year. The company’s latest financial results reflect higher revenue, improved gross profit and lower net finance costs.

According to the financial statements submitted to the Pakistan Stock Exchange, Power Cement recorded revenue of Rs. 10.65 billion during the quarter, compared with Rs. 7.81 billion in the same period last year, representing an increase of approximately 36.3%.

Profit After Tax Rises to Rs. 1.05 Billion

The company’s profitability improved across several key financial indicators. Profit after taxation reached Rs. 1.05 billion, up from Rs. 804.36 million in the corresponding quarter of the previous year, reflecting growth of approximately 30.6%.

Profit before taxation increased to Rs. 1.67 billion from Rs. 1.25 billion, registering growth of around 32.9%. Gross profit also climbed to Rs. 3.58 billion from Rs. 2.71 billion, supported by higher revenue during the reporting period.

Earnings per share (EPS) improved to Rs. 0.80 from Rs. 0.60, indicating stronger earnings for shareholders.

Operating Performance Shows Improvement

Power Cement’s operating performance remained positive during the quarter. Operating profit increased to Rs. 2.08 billion from Rs. 1.76 billion in the same period last year, while EBITDA rose to Rs. 2.32 billion from Rs. 1.97 billion.

Net finance costs declined to Rs. 410.45 million from Rs. 504.70 million, representing a reduction of approximately 18.7%. The decrease helped support the company’s growth in pre-tax and after-tax earnings.

However, selling and distribution expenses increased to Rs. 1.28 billion from Rs. 666.52 million, while administrative expenses also rose. These higher expenses remain important factors to monitor in assessing the sustainability of future profit growth.

Clinker Production and Dispatches Increase

The company’s operational results showed mixed trends in production and sales volumes.

Clinker production increased by 19.07% to 603,188 tonnes, compared with 506,574 tonnes in the corresponding quarter last year. Cement production, however, declined by 13.08% to 362,719 tonnes from 417,286 tonnes.

Total clinker and cement dispatches increased by 32.29% to 791,004 tonnes from 597,933 tonnes. Local clinker and cement dispatches rose by 5.40% to 379,014 tonnes, while clinker exports increased significantly to 411,275 tonnes from 197,048 tonnes.

Cement exports declined sharply to 715 tonnes from 41,291 tonnes. The contrasting movements in clinker and cement exports highlight changes in the company’s product mix and sales channels during the quarter.

Cash Flow and Financial Position

Power Cement generated Rs. 4.37 billion in cash from operations during the first quarter, compared with Rs. 2.02 billion a year earlier. Net cash generated from operating activities increased to Rs. 3.44 billion from Rs. 1.04 billion.

The company’s cash and cash equivalents stood at Rs. 1.01 billion at September 30, 2026, compared with Rs. 454.58 million at the end of the corresponding period last year.

Total assets amounted to Rs. 45.95 billion at September 30, 2026, compared with Rs. 47.40 billion at June 30, 2026. Total liabilities declined to Rs. 21.29 billion from Rs. 23.39 billion over the same period, while total equity increased to Rs. 24.67 billion from Rs. 24.01 billion.

These figures indicate stronger operating cash generation and an improvement in equity, although the company’s financing obligations and working-capital requirements remain relevant considerations.

Outlook for the Cement Industry

In its directors’ review, Power Cement noted signs of recovery in Pakistan’s cement industry during the first quarter of FY2026-27. Overall cement dispatches increased by 3.90%, supported by stronger domestic demand and construction activity, while export dispatches across the industry declined.

The company expects cement demand to benefit from construction activity, infrastructure development, housing initiatives and improved financing conditions. However, energy and transportation costs, inflationary pressures, utility tariffs and international commodity prices remain potential challenges.

Power Cement stated that it will continue focusing on operational efficiency, energy optimisation, disciplined cost management and expanding export markets to support margins and strengthen business resilience.

Conclusion

Power Cement Limited delivered a stronger financial performance in the first quarter of FY2026-27, with revenue rising by 36.3% and after-tax profit increasing by 30.6%. Higher clinker production, increased total dispatches, improved operating cash flow and lower net finance costs contributed to the positive results.

Nevertheless, the decline in cement production and cement export volumes, together with higher selling and distribution expenses, will be important areas to watch in upcoming quarters.

The company’s future performance will depend on its ability to sustain revenue growth, manage operating costs, improve production efficiency and benefit from a continued recovery in Pakistan’s construction and cement sectors.