Power Cement Delivers Strong Profit Growth in FY2026
Power Cement Limited has reported a significant improvement in its financial performance for the year ended June 30, 2026, with profit after tax rising to Rs3.78 billion, compared with Rs814.99 million recorded in the previous financial year.
According to the company’s annual financial results, revenue increased to Rs33.98 billion in FY2026 from Rs29.52 billion a year earlier, while gross profit climbed to Rs12.09 billion, compared with Rs8.40 billion in FY2025.
The company’s operating profit also showed a strong increase, reaching Rs7.43 billion, up from Rs4.62 billion in the previous year. Earnings per share improved substantially to Rs2.86 on a basic basis, compared with just Rs0.44 in FY2025.
Higher Sales and Better Margins Support Growth
Power Cement attributed its improved performance to stronger sales volumes, better operational efficiencies and effective cost management. The directors’ report noted that sales revenue increased by 15.1% year-on-year, while gross profit rose by 43.9% to Rs12.09 billion.
The company’s EBITDA reached Rs8.41 billion, compared with Rs5.51 billion in FY2025, reflecting the improvement in operating performance. At the same time, finance costs declined by 39.8% to Rs1.83 billion, primarily due to lower policy rates and a reduction in the company’s average borrowing rate.
The combination of stronger gross margins, improved operational performance and lower financing costs helped Power Cement more than quadruple its profit after tax during the year.
Cement Production Also Rises
The company recorded growth in production during FY2026. Cement production increased to 4.60 million tonnes, compared with 4.04 million tonnes in the previous year, representing growth of approximately 13.4%.
Clinker production also increased to 2.42 million tonnes, up from 2.13 million tonnes, while capacity utilization improved to 75.7% from 67.6%.
Domestic cement dispatches increased during the year, while export volumes declined. According to the directors’ report, domestic cement and clinker dispatches increased by around 1.75%, whereas cement exports fell by approximately 16%. The company said the decline in exports was linked to weaker demand in certain international markets.
Cash Generation Remains Strong
Power Cement generated Rs7.06 billion in cash from operations during FY2026, compared with Rs6.18 billion in FY2025. Despite this strong operating cash generation, the company ended the year with cash and cash equivalents of Rs584.63 million, down from Rs1.24 billion a year earlier, following investment and financing activities.
The company also continued to invest in its operations, with capital expenditure amounting to approximately Rs336.4 million during the year.
Outlook Remains Focused on Efficiency
Looking ahead, Power Cement expects economic activity to continue improving and sees potential for cement demand to benefit from infrastructure development, construction activity and public-sector spending.
The company said it would remain focused on operational efficiency, energy management and disciplined cost control. It also highlighted its 7.5 MW wind power project, which is expected to reduce dependence on the national grid and help lower electricity-related costs.
Power Cement also maintained its focus on sustainability and environmental initiatives. Its annual report highlights investments in energy efficiency, water conservation, waste reduction, recycling and environmental monitoring.
Overall, FY2026 marked a strong turnaround in profitability for Power Cement. With higher revenues, improved margins, increased production, lower finance costs and continued efforts to control operating expenses, the company enters the new financial year from a considerably stronger financial position.
