Fecto Cement Limited: performance and outlook

Business Recorder reported that Fecto Cement Limited lifted its net sales 12.60 percent in 2026 to Rs12,495.27 million, helped by a recovery in overall dispatches. Local volumes rose while exports softened, and the company credited better distribution and market presence for the local gain. Net profit came in at Rs663.36 million, up 8.98 percent, which equated to EPS of Rs13.22 and a 5.31 percent net margin.

Margins came under pressure, however, as cost of sales climbed 20.80 percent on higher coal prices. Gross profit fell 28.82 percent after retention prices dropped, leaving the GP margin at 10.44 percent. Operating profit dwindled 25.93 percent, bringing the OP margin to 7.90 percent, while better working capital handling and monetary easing helped shrink finance cost by 37.36 percent.

The company's outlook sees stronger macroeconomic indicators, better investor confidence and infrastructure activity lifting cement demand in 2027, with PSDP disbursements and development in flood-affected areas adding support. Risks flagged include geopolitical tensions, home-grown political uncertainty, heavier excise and property levies, and tougher rivalry from northern producers. The directors hold 75.13 percent of the 50.16 million shares outstanding as of June 30, 2025.