Gharibwal Cement Limited has reported a stronger financial performance for the fiscal year ended June 30, 2026, with higher cement sales volumes helping the company increase revenue and maintain profitability despite pressure from rising fuel, power and other input costs.

According to the company’s Annual Report 2026, Gharibwal Cement sold 1.433 million tonnes of cement in the local market, representing a 17.34% year-on-year increase. The broader north-based cement industry also recorded higher domestic dispatches during the year, while the company noted that average net selling prices declined by 3.41%.

Revenue Crosses Rs. 22 Billion

The increase in sales volumes supported Gharibwal Cement’s overall revenue performance. Net sales reached Rs. 22.313 billion, compared with Rs. 19.687 billion in the previous year, representing an increase of around 13.34%.

However, higher volumes did not translate into a similar increase in gross profitability. The company reported that fuel, electricity and other input costs remained under pressure during the year, with the impact becoming particularly significant during the final quarter.

Management said savings from solar energy and other cost-optimization measures helped offset a substantial portion of these higher costs. Nevertheless, gross profit declined to Rs. 4.210 billion from Rs. 4.586 billion a year earlier. EBITDA also decreased to approximately Rs. 4.443 billion from Rs. 4.804 billion.

Net Profit Improves

Despite the pressure on operating margins, Gharibwal Cement ended FY2026 with a higher bottom-line profit.

Profit after taxation increased to Rs. 2.345 billion, compared with Rs. 2.205 billion in FY2025. Earnings per share also improved from Rs. 5.51 to Rs. 5.86.

The company benefited from stronger finance income during the year, while finance expenses declined following scheduled repayments of borrowings. This helped support the improvement in net profit despite weaker gross profitability.

The detailed profit-and-loss statement shows that finance income rose to Rs. 466.955 million, while finance expenses fell to Rs. 135.001 million. Profit before income tax stood at Rs. 3.420 billion, while income tax expense was Rs. 1.075 billion.

Stronger Liquidity and Lower Debt

Gharibwal Cement also maintained a solid liquidity position. Its current ratio stood at 2.56 times in FY2026, according to the six-year financial summary. Shareholders’ equity increased to approximately Rs. 28.04 billion, while total assets reached Rs. 41.48 billion.

The company continued repaying its long-term borrowings according to schedule. Its annual report notes that the legacy loan is expected to be fully repaid by 2029, while cash and investments provide a significant financial buffer.

Operating cash generation also improved considerably. Net cash inflow from operating activities increased to Rs. 4.769 billion in FY2026 from Rs. 2.969 billion in FY2025.

Focus on Energy Efficiency and Sustainability

Energy management has become an important part of Gharibwal Cement’s strategy. The company highlighted its use of solar energy and other efficiency measures to control production costs.

FY2026 also marked the publication of the company’s first Sustainability Report, incorporated into the Annual Report. The report covers areas including energy efficiency, carbon intensity, responsible resource management and occupational health and safety.

The company also prepared its first ESG report in accordance with IFRS S1 and IFRS S2, with its Audit Committee assigned greater oversight of ESG and sustainability-related reporting.

Outlook for the Coming Year

Looking ahead, Gharibwal Cement expects cement demand to gradually improve, depending on infrastructure development, government spending and broader macroeconomic conditions.

The company plans to maintain its focus on cost optimization, process efficiency, energy utilization and cost-effective fuel sources. Management also expects fuel, power and other input costs to remain important challenges.

The FY2026 results therefore present a mixed but notable picture: higher cement volumes and revenue were accompanied by pressure on operating margins, while stronger finance income, cost-control measures and disciplined financial management helped the company deliver higher net profit.

Overall, Gharibwal Cement’s latest annual report highlights its continued emphasis on operational efficiency, debt reduction, energy management and sustainability as it prepares for changing conditions in Pakistan’s cement market.

Alternative headline options:

  • Gharibwal Cement Posts Rs. 2.35bn Profit in FY2026 as Cement Sales Surge
  • Gharibwal Cement Revenue Climbs to Rs. 22.31bn in FY2026
  • Higher Cement Volumes Lift Gharibwal Cement’s FY2026 Profit
  • Gharibwal Cement Delivers Higher Profit Despite Rising Input Costs