Attock Cement Posts 29% Increase in Quarterly Profit, Revenue Rises to Rs12 Billion

Attock Cement Pakistan Limited has reported a strong financial performance for the first quarter ended September 30, 2026, with its after-tax profit increasing by 29% compared with the corresponding period last year. The company’s latest financial results reflect improved domestic cement demand, higher local dispatches and better utilization of production facilities.

According to the company’s first-quarter financial report, profit after tax reached Rs1.079 billion, compared with Rs834.7 million recorded in the same quarter of the previous financial year. Earnings per share also improved to Rs7.85 from Rs6.07, indicating stronger profitability during the reporting period.

Revenue Records 14% Growth

Attock Cement’s revenue increased by 14% to Rs12.03 billion during the July-September quarter, compared with Rs10.54 billion in the corresponding period last year.

Gross profit rose to Rs3.25 billion from Rs3.01 billion. However, the gross profit margin declined to 27% from 29%, mainly due to higher international coal prices and changes in production costs.

Despite pressure on gross margins, the company’s operating profit increased to Rs1.79 billion from Rs1.61 billion. Its operating profit margin remained stable at 15%.

Another positive development was the reduction in finance costs, which declined to Rs115.9 million from Rs228.9 million in the same period last year. This helped support the improvement in overall profitability.

Higher Production and Local Cement Sales

The company’s operational performance also showed improvement during the quarter. Clinker production increased by 13% to 875,655 tons, compared with 775,060 tons a year earlier. Cement production grew by 17% to 428,041 tons.

Total cement dispatches increased to 426,750 tons from 354,637 tons, representing growth of approximately 20%. Local cement dispatches recorded particularly strong growth of 24%, reaching 411,750 tons.

However, export cement dispatches declined to 15,000 tons from 21,660 tons. Total dispatches, including clinker, increased by 1% to 863,676 tons.

Clinker capacity utilization also improved significantly, reaching 85% compared with 76% in the corresponding quarter last year.

Cement Industry Benefits from Improved Demand

The cement industry in Pakistan’s southern region experienced a positive start to FY2026-27. Overall industry growth reached 16% during the first quarter, with local dispatches increasing by 13% and exports rising by 19%.

Improved residential construction activity, infrastructure development and relatively lower monsoon-related disruptions supported domestic demand.

Export markets, including East Africa, West Africa, Sri Lanka and the United States, also offered opportunities for Pakistani cement manufacturers. However, competition in international markets, freight expenses and fluctuating input costs remained important challenges for the industry.

Stronger Cash Generation and Financial Position

Attock Cement generated Rs2.84 billion in net cash from operating activities during the quarter, compared with Rs1.68 billion in the same period last year.

The company’s cash and bank balances increased to Rs2.02 billion as of September 30, 2026, compared with Rs1.47 billion at June 30, 2026.

Total assets stood at Rs52.78 billion, while shareholders’ equity increased to Rs25.78 billion.

These figures reflect an improvement in the company’s operating cash generation and overall financial position during the reporting period.

Outlook for FY2026-27

The outlook for Pakistan’s cement industry remains encouraging, supported by expectations of continued construction activity, infrastructure development and improving domestic demand.

However, future performance will depend on several factors, including economic growth, interest rates, government development spending, fiscal policies and energy costs.

Attock Cement’s management has indicated that it will continue focusing on production efficiency, energy optimization, cost control and expansion of its presence in export markets.

The company also aims to maximize production capacity utilization and strengthen procurement practices to maintain competitiveness in an evolving business environment.

Overall, Attock Cement’s first-quarter results demonstrate improved profitability, higher domestic sales and stronger operating cash flows. While rising coal prices and competitive export markets remain challenges, the company’s performance provides a positive start to the new financial year.