Cherat Cement Continues to Cement Its Position Through Innovation and Sustainable Growth
Cherat Cement Company Limited has presented its Annual Report for the year ended June 30, 2026, under the theme “Cementing Success.” The report highlights the company’s continued focus on operational excellence, innovation, sustainability, people development, portfolio optimization and long-term value creation.
A Ghulam Faruque Group company, Cherat Cement is principally engaged in the manufacturing, marketing and sale of cement. Its products include Ordinary Portland Cement under the Cherat brand and Portland Composite Cement under the Cherat Khyber brand. Its manufacturing facility is located in Lakrai, Nowshera, Khyber Pakhtunkhwa, with its products serving markets in KPK, FATA, Azad Kashmir and Punjab, while Afghanistan remains an important export market.
Financial Performance Reflects a Challenging Year
Cherat Cement recorded net turnover of Rs. 36.48 billion during FY2026, compared with Rs. 37.81 billion in FY2025. Gross profit stood at Rs. 12.04 billion, while operating profit was Rs. 11.64 billion. Profit after taxation amounted to Rs. 7.25 billion, compared with Rs. 8.68 billion in the previous year, while earnings per share stood at Rs. 37.34.
The company’s performance was influenced by developments in both domestic and export markets. According to the annual report, domestic cement demand increased by 9% during FY2026, while total cement exports declined by 2%. A significant 52% decline in exports to Afghanistan, attributed in the report to the closure of the Afghan border, offset growth in sea-based exports. Overall cement sales volumes nevertheless increased by 7%, primarily because of stronger domestic demand.
Focus on Energy Efficiency
Energy efficiency remains an important part of Cherat Cement’s strategy. The company has worked to reduce dependence on external electricity supplies through a combination of waste heat recovery, self-generation, solar power and grid sourcing. It has also moved toward greater use of local coal and optimization of its coal mix as part of its cost-management efforts.
The company is also progressing toward its green cement ambitions and exploring ways to reduce its carbon footprint while maintaining operational efficiency. During FY2026, work commenced on an additional 5 MW solar power plant, while the Board approved a 25 MW Battery Energy Storage System (BESS). The company also continued its move toward electric material-handling equipment, including the operational deployment of EV dumpers.
Investing in People and Communities
Cherat Cement’s strategy extends beyond production and financial performance. The company identifies its people as a key driver of success and emphasizes learning, collaboration, empowerment and innovation.
The annual report notes that employee turnover declined from 5.7% in 2024 to 3.9% in 2025 and 2.83% in 2026. Training hours also increased from 8,528 in FY2025 to 10,090 hours in FY2026, reflecting greater emphasis on employee development and internal growth.
Corporate social responsibility is another major component of the company’s approach. Cherat Cement says its CSR initiatives focus on improving quality of life, supporting underserved communities and promoting sustainable development around its operations. Education, healthcare and community development are highlighted as areas of focus.
Building for the Future
Cherat Cement’s stated vision is “Building a better future,” supported by objectives that include achieving excellence through innovation, maintaining customer trust, developing its people, supporting communities, building a greener future and optimizing its investment portfolio.
The company’s history also demonstrates a long-term focus on capacity development and modernization. Its journey includes successive capacity expansions, waste heat recovery, alternative fuel initiatives, solar power projects, automation and digital transformation. The report also highlights the commissioning of a 9 MW solar power project and the ongoing development of additional renewable-energy and energy-storage capacity.
Cherat Cement enters the next phase with a strategy centered on operational efficiency, innovation, sustainability and responsible growth. While FY2026 presented challenges from energy costs, market conditions and reduced Afghanistan exports, the company continues to invest in technology, people, energy efficiency and future capacity.
With its established market presence, diversified energy approach and focus on sustainable practices, Cherat Cement’s FY2026 story reflects an ongoing effort to strengthen its foundations while preparing for the changing needs of Pakistan’s construction and cement sectors.
