Karachi: The Pakistan cement sector is projected to witness an 11% year-on-year increase in earnings for the first quarter of fiscal year 2026, as reported by AKD Securities Limited. This growth is primarily attributed to higher offtakes and reduced energy costs, despite challenges posed by lower retention prices.
According to the report by AKD Securities, all companies within their coverage universe are expected to show earnings growth this quarter, with the exceptions of Kohat Cement Company Limited (KOHC) and Cherat Cement Company Limited (CHCC). Among the companies, D.G. Khan Cement Company Limited (DGKC) and Maple Leaf Cement Factory Limited (MLCF) are identified as the key outperformers.
The firm maintains a positive outlook on the sector, predicting an increase in core profitability. AKD Securities has highlighted DGKC, Lucky Cement Limited (LUCK), and Fauji Cement Company Limited (FCCL) as their preferred picks based on expected performance.
This anticipated growth comes amid a backdrop of strategic adjustments within the industry, aiming to leverage operational efficiencies and cost management to enhance profitability.
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