Cement Sector rebounds in FY26, demand momentum expected to build further

Cement companies listed on the KSE-100 posted combined profit after tax of Rs143 billion in FY26, according to Mettis Global, up 13 per cent from Rs126 billion a year earlier. Sector revenue rose 8 per cent to Rs715,497m, while gross profit grew 6 per cent. Lucky Cement led the group with 33 per cent of sector earnings, followed by Bestway Cement at 18 per cent and Fauji Cement at 11 per cent.

Maple Leaf Cement Factory saw full-year earnings fall by half to Rs8,446m, as finance costs climbed 26 per cent to Rs4,490m because of debt servicing tied to the acquisition of PIOC. Kohat Cement's yearly earnings slipped 8 per cent to Rs10,697m, though the company's overall performance was described as steady. Across the sector, finance costs dropped 31 per cent, which the report linked to lower benchmark interest rates, while industry dispatches totalled 51 million tonnes, up 7 per cent.

Lucky Cement expects domestic cement demand to build on the FY26 recovery, helped by infrastructure spending, housing incentives and an improving interest rate backdrop. Fauji Cement, however, pointed to persistently low capacity utilization, elevated energy costs and high indirect taxation as ongoing challenges. Bestway Cement sees construction activity slowly recovering, positioning the sector to pursue growth despite fragile geopolitics and supply disruptions.