Cherat Cement Company Limited: performance and outlook

Cherat Cement Company Limited (PSX: CHCC) reported net profit of Rs7254.568 million for 2026, a 16.44 per cent fall from the previous year, according to Business Recorder. Net sales slipped 3.51 per cent to Rs36,482.81 million, which the report linked to a 57 per cent drop in export sales after the closure of the Afghan border. Earnings per share came to Rs37.34 and the net profit margin stood at 19.88 per cent.

Gross profit fell 13.79 per cent as higher coal prices and a weaker fuel mix lifted cost of sales by 2.51 per cent. Operating profit dropped 13.63 per cent, while finance costs were cut by 42.27 per cent after large loan repayments. Gearing eased to 6.90 per cent from 15.15 per cent in 2025, following a year in which net profit had jumped 57.85 per cent.

The company has notified the PSX of its intention to acquire at least 30 per cent of Nimir Industrial Chemicals Limited (NICL), a step that the report says will diversify its income sources. Looking ahead, PSDP, CPEC and other government projects are expected to support local sales, while planned additions of 5.4 MW solar and 25 MW battery storage capacity will improve its power generation profile.