Dewan Cement Reports Strong Revenue Growth, Significantly Lower Loss in FY2026
Dewan Cement Limited has reported a notable improvement in its financial performance for the year ended June 30, 2026, with revenue increasing substantially and the company’s annual loss narrowing sharply compared with the previous year.
According to the company’s financial results, net turnover rose to Rs24.999 billion in FY2026 from Rs21.413 billion in FY2025, representing growth of approximately 17%. Despite higher costs, the company managed to maintain a gross profit of Rs1.587 billion, slightly above the Rs1.546 billion recorded a year earlier. 283682
Loss Declines Significantly
One of the most notable developments was the substantial reduction in Dewan Cement’s annual loss. The company reported a loss after taxation of Rs169.752 million for FY2026, compared with a much larger loss of Rs967.788 million in FY2025.
This represents an improvement of nearly 82% year on year. Loss per share also improved considerably, declining from Rs2.00 per share in FY2025 to Rs0.32 per share in FY2026. 283682
The improvement came despite the company recording higher operating expenses. Administrative expenses increased to approximately Rs1.325 billion, while other operating expenses stood at around Rs103 million. As a result, the company still recorded an operating loss of approximately Rs59 million for the year. 283682
Asset Base Expands
Dewan Cement’s financial position also showed an increase in total assets. The company reported total assets of approximately Rs60.35 billion as of June 30, 2026, compared with Rs47.24 billion a year earlier.
Property, plant and equipment increased significantly to around Rs55.11 billion, compared with Rs43.49 billion in FY2025. The increase indicates a larger asset base at the end of the reporting period. 283682
Total equity also improved to approximately Rs33.50 billion, compared with Rs24.48 billion at the end of the previous financial year. The statement of changes in equity shows that the company’s total equity benefited from the surplus arising from the revaluation of property, plant and equipment. 283682
Cash Flow Remains Positive from Operations
The company generated Rs480.75 million in net cash flows from operating activities during FY2026, although this was lower than the approximately Rs1.014 billion generated in FY2025.
Dewan Cement spent around Rs661.6 million on fixed capital expenditure, resulting in net cash outflows from investing activities of approximately Rs660.2 million. Financing activities generated net cash inflows of about Rs379.3 million.
Despite these movements, cash and cash equivalents increased to Rs361.45 million at June 30, 2026, compared with approximately Rs161.63 million a year earlier. 283682
No Dividend or Bonus Shares Announced
The board did not recommend a cash dividend, bonus shares, right shares or any other corporate entitlement for the year ended June 30, 2026. 283682
The company’s financial results therefore remain focused on improving its underlying financial position and reducing losses rather than distributing earnings to shareholders.
Auditor Raises Going-Concern Concerns
While the financial results show considerable improvement in the annual loss, the company’s filing also highlights important concerns.
The auditors issued a qualified opinion on the financial statements. The qualifications relate to the non-provisioning of markup and the classification of current liabilities as non-current liabilities. The filing also states that an emphasis of matter paragraph has been included regarding doubt about the company’s ability to continue as a going concern. 283682
These observations remain important for investors because the sharp reduction in losses does not, by itself, eliminate the financial and liquidity challenges identified in the company’s accounts.
AGM Scheduled for October 26
Dewan Cement has announced that its Annual General Meeting will be held on October 26, 2026, in Karachi. The company’s share transfer books will remain closed from October 19 to October 26, 2026, both days inclusive. 283682
Overall, Dewan Cement’s FY2026 results present a mixed but improved picture. The significant rise in turnover and dramatic reduction in the annual loss are encouraging developments, while the continued operating loss, cash-flow pressures and auditors’ going-concern observations indicate that the company still faces challenges. The coming financial year will be important in determining whether the improvement can be converted into sustainable profitability.
