Power Cement Profit Soars as Sales and Margins Strengthen
KARACHI: Power Cement Limited delivered a significant improvement in its financial performance during the nine months ended March 31, 2026, with profitability, sales volumes and earnings per share all showing strong growth compared with the same period last year.
According to the company’s financial results, net sales revenue increased 22.02% to Rs25.63 billion, compared with Rs21.00 billion in the corresponding period of the previous year. The improvement was supported by higher sales volumes and stronger margins.
The company’s gross profit rose 56.01% to Rs9.05 billion, from Rs5.80 billion a year earlier, while EBITDA increased to Rs6.23 billion from Rs3.92 billion. Operating profit also climbed substantially, reaching Rs5.52 billion, compared with Rs3.28 billion in the same period last year.
A major contributor to the improvement was the reduction in net finance costs. Net finance cost declined to Rs1.41 billion, compared with Rs2.51 billion in the corresponding period, helping the company achieve profit before taxation and levy of Rs4.11 billion, against only Rs762.3 million previously.
After taxation and levy, Power Cement posted a profit of Rs2.53 billion, compared with Rs347.9 million in the nine months ended March 31, 2025. This represents a substantial year-on-year increase in profitability.
Sales Volumes Show Broad-Based Improvement
The company also recorded strong growth in dispatches. According to the production and sales data presented in the report, total sales increased 16.54% to 1.94 million tons, compared with 1.67 million tons during the same period last year.
Local clinker and cement dispatches increased 2.50%, while clinker exports jumped 61.34%. Cement exports also grew 4.09%, reflecting stronger overall sales activity.
The improvement comes as Pakistan’s cement industry showed signs of recovery during the nine-month period. Industry-wide dispatches increased 9.80%, with domestic dispatches rising 10.61% and exports growing 6.25%, according to the company’s industry overview.
Earnings Per Share Improve Sharply
The company’s improved profitability was also reflected in shareholder earnings. Basic earnings per share increased to Rs1.91, compared with Rs0.07 a year earlier, while diluted EPS stood at Rs1.82, compared with Rs0.07 previously.
Despite the stronger results, the board recommended no cash dividend, bonus shares, right shares or other corporate action for the period.
Outlook Remains Positive but Cautious
Looking ahead, Power Cement expects improving economic conditions and recovering demand to provide support for the business. The company highlighted improving macroeconomic stability, better fiscal management and increased industrial activity as positive factors.
The company is also progressing with its 7.5 MW wind power project, which is expected to commence operations during FY2026-27. The project is intended to support cost optimisation and sustainability objectives.
However, management noted that geopolitical tensions, inflation, energy prices and weaker purchasing power remain potential risks for the cement industry. The company nevertheless believes it is well positioned to sustain growth and enhance long-term shareholder value.
Overall, Power Cement’s nine-month results indicate a marked turnaround in profitability, supported by higher revenues, improved margins, stronger dispatches and substantially lower finance costs.
