Cement sector profits may rise 2pc in 1QFY27

Business Recorder says AKD Securities expects Pakistan’s cement producers to earn Rs29.6 billion in 1QFY27, up 2 percent from a year earlier. The brokerage’s model puts sector sales at Rs141.2 billion, a 15 percent gain, as dispatches expand 2 percent and selling prices climb 10 percent. Gross profit is estimated at Rs47.2 billion, with a 33.5 percent margin, compared with 32.9 percent in 1QFY26.

Higher domestic sales and improved price retention are expected to counter dearer coal and transport, while interest charges are projected at Rs5.2 billion, twice the year-earlier amount. AKD forecasts per-share earnings of Rs3.0 for Maple Leaf Cement, Rs1.9 for Fauji Cement, Rs5.7 for D.G. Khan Cement and Rs8.3 for Pioneer Cement, with all four showing annual growth. The outlook also flags high oil and coal costs and a prolonged Middle East conflict as risks to demand and margins.