DGKC sees durable FY27 cement recovery on lower rates, reconstruction demand

According to Mettis Global, D.G. Khan Cement (PSX: DGKC) expects the upswing in domestic cement sales that started in FY26 to hold, citing cheaper borrowing and a slow pickup in construction. Flood rehabilitation is also seen supporting demand in the medium run. The company favours the home market, treating exports as opportunistic because regional trade routes have been disrupted.

Projected FY27 sales are Rs87,352m, gross profit Rs21,938m and profit before tax Rs17,124m, which management considers achievable despite higher royalty rates and input costs. A foreign currency facility taken for the Rafhan Maize investment will carry a full year of financing charges, pushing finance cost above the low FY26 level. Planning assumes construction grows steadily, with no sudden surge in demand.

A 25 MW solar plant with 10 MWh battery storage was contracted at the DG Khan site in September 2026 and is due to begin generating in March 2027, reducing reliance on grid and captive power. The 11,000 MT per day clinker line at the same site remains on schedule. The company is also moving into Rafhan Maize Products (PSX: RMPL) to broaden earnings beyond cement, which it sees as diversifying away from a single cyclical industry.