Cherat Cement Company Limited reported a profit after tax of Rs5.52 billion for the nine months ended March 31, 2026, reflecting a decline of 19.3% compared to the Rs6.83 billion earned during the same period last year. The decrease was largely attributed to the absence of a one-time tax credit that had boosted earnings in the corresponding period of FY25.
According to the company’s third-quarter financial report, net sales stood at Rs27.59 billion, slightly lower than Rs28.07 billion recorded a year earlier. While domestic cement demand improved, lower export volumes and softer retention prices weighed on overall revenue performance.
During the period, Cherat Cement’s total dispatches increased by 4% to 1.82 million tons from 1.75 million tons in the corresponding period last year. Domestic sales volumes rose by 12% to 1.65 million tons, supported by recovering construction activity. However, export sales declined sharply by 36% to 173,183 tons due to the continued closure of the Afghan border, a key export market for the company.
The company reported a gross profit of Rs9.60 billion compared with Rs10.80 billion in the same period last year. Cost of sales increased by 4% owing to higher production volumes, rising electricity costs, and inflationary pressures on raw materials and other inputs. Management said it continued focusing on operational efficiencies and optimizing its energy mix through increased solar generation and greater reliance on the national grid.
A positive development for the company was a significant reduction in finance costs, which fell 45% to Rs278 million from Rs506 million a year earlier. The decline was driven by lower borrowing costs and scheduled repayments of long-term debt.
Earnings per share (EPS) for the nine-month period stood at Rs28.40, compared with Rs35.17 in the corresponding period of FY25.
Looking ahead, Cherat Cement expects the operating environment to remain challenging amid geopolitical tensions in the Middle East, rising inflationary pressures, and uncertainty in export markets. Nonetheless, the company remains optimistic about domestic demand recovery and plans to continue investing in solar energy and battery storage projects to improve efficiency and support long-term profitability.
