Cement Sector Sees Continued Growth as Domestic Demand Rises

Karachi: Cement dispatches in September 2025 reached 4.2 million tons, marking a 7% increase compared to the same period last year. This growth was primarily driven by a 14% rise in local sales, which effectively countered a 15% decrease in exports. Month-over-month, total dispatches saw a 10% increase, fueled by an 11% uptick in exports.

In the first quarter of the fiscal year 2026, cement volumes rose by 16% year-over-year. This growth was propelled by a 15% increase in domestic dispatches, as demand improved due to an 11% reduction in interest rates since the previous year and a gradual recovery in construction activity. Additionally, exports grew by 21% year-over-year, benefiting from stronger demand in the region.

Among the companies covered, DG Khan Cement Company (DGKC) reported a 14% year-over-year growth in dispatches during the first quarter of fiscal year 2026. Lucky Cement (LUCK) and Maple Leaf Cement Factory (MLCF) both saw an 11% and 18% increase, respectively. Kohat Cement Company (KOHC) and Fauji Cement Company Limited (FCCL) also recorded growth rates of 18% and 13%, respectively. Meanwhile, Attock Cement Pakistan Limited (ACPL) posted a substantial 49% rise, and Pioneer Cement (PIOC) experienced an 18% increase.

Analysts from JS Global maintain an optimistic outlook on the cement sector, citing a recovery in domestic construction activity, stable macroeconomic conditions, and moderated coal prices as key factors supporting this positive stance.