Key Takeaways
- Cement sector profits expected to increase 2% year-on-year to Rs29.6 billion in Q1 FY27.
- Revenue forecast to rise 15% to Rs141.2 billion, driven by higher cement offtakes and increased retention prices.
- Gross profit projected to grow 17% to Rs47.2 billion, with a gross margin of 33.5%.
Pakistan's cement sector is projected to see a 2% year-on-year increase in profits to Rs29.6 billion in the first quarter of fiscal year 2026-27, according to a research report by AKD Securities Limited.
The report forecasts a 15% year-on-year rise in revenue to Rs141.2 billion, supported by a 2% growth in cement offtakes and a 10% increase in cement prices.
Gross profit is expected to increase by 17% to Rs47.2 billion, while the gross margin is projected to improve to 33.5% from 32.9% in the same period last year.
Operating expenses are forecast to rise 8% to Rs8.1 billion, while other income is expected to decline 5% to Rs12.6 billion from Rs13.2 billion.
Finance costs are projected to double to Rs5.2 billion from Rs2.6 billion, while profit before tax is expected to increase 2% to Rs43 billion.
Taxation is forecast to rise 4% to Rs13.5 billion, taking the effective tax rate to 31.3% from 30.8%.
Net profit is consequently forecast at Rs29.6 billion, compared with Rs29.1 billion in 1QFY26.
On a quarter-on-quarter basis, sector revenue is projected to increase 13% from Rs125.1 billion in 4QFY26, with gross profit rising 4% from Rs45.6 billion.
Operating expenses are forecast to fall 10% to Rs8.1 billion from Rs9 billion, while other income is projected to increase 13% to Rs12.6 billion.
Finance costs are expected to rise 38% to Rs5.2 billion, while profit before tax is forecast to increase 9% to Rs43 billion, taxation to rise 25% to Rs13.5 billion, and net profit to increase 2% from Rs28.9 billion in the preceding quarter.
