Gharibwal Cement Earnings Surge Amid Rising Sales and Strategic Fuel Shift

Karachi: Gharibwal Cement Ltd (GWLC) reported a 27 percent increase in earnings for the fiscal year 2025, reaching PkR2.2 billion, up from PkR1.7 billion the previous year. This growth was attributed to improved margins and a 2 percent rise in sales volume, as discussed during the company’s recent analyst briefing.

Sales for the year climbed 8 percent to PkR19.6 billion, driven by a modest increase in cement dispatches. Retention prices for cement averaged PkR16,078 per ton, marking a 6 percent rise from the prior year. However, current retention prices stand at approximately PkR15,050 per ton, with management predicting stable levels or a slight decline moving forward.

The company anticipates a 6 to 10 percent growth in industry offtakes in fiscal year 2026, reflecting a positive outlook for the sector.

GWLC has strategically increased its use of local coal in its fuel mix, reaching 38 percent in FY25, up from 27 percent the previous year. Imported coal usage decreased to 62 percent, compared to 73 percent previously. The average coal cost was around PkR34,000 to PkR35,000 per ton.

The company’s power generation strategy includes 50 percent captive generation through waste heat recovery and circulating fluidized bed systems, 11 percent grid power, 17 percent solar, and 22 percent heavy fuel oil. The average power cost decreased to PkR20 per unit in FY25. During the year, GWLC expanded its solar capacity by 12.5 megawatts, bringing the total to 24.5 megawatts.

Average grid rates during FY25 were approximately PkR50 per unit, but have decreased to PkR38 per unit in the first quarter of FY26.

Construction on the company’s 10,000 tons per day expansion plan is progressing as planned, though its execution pace will depend on market demand. The company is not currently under formal coverage by AKD Securities Limited.