{
  "id": 12989659,
  "title": "Q1 cement sector profits likely to rise 16pc to Rs32.4bn YoY",
  "url": "https://urgent.news/2026/10/09/q1-cement-sector-profits-likely-to-rise-16pc-to-rs32-4bn-yoy",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-09T00:27:58.000Z",
  "source": {
    "name": "Business Recorder",
    "slug": "business-recorder",
    "url": "https://www.brecorder.com/news/40443335/q1-cement-sector-profits-likely-to-rise-16pc-to-rs324bn-yoy"
  },
  "original_language": "en",
  "account": "Karachi receives report indicating cement sector profits may surge 16 percent year-on-year to Rs32.4 billion in Q1FY27. Topline cement sector is forecast to see 16 percent YoY growth in profitability, driven by increased net sales and retention prices. QoQ growth is expected to stem from higher other income, mainly from dividends from Lucky Electric Power Company Limited (LEPCL) to Lucky Cement (LUCK). Projected sector sales of Rs143 billion in Q1FY27 represent 25 percent YoY and 14 percent QoQ growth. Higher cement prices and growth in local dispatches are credited with driving the YoY increase. Local dispatches rose 8 percent YoY, while export dispatches fell 11 percent YoY. QoQ dispatches saw 9 percent domestic growth and 10 percent export growth. Cement prices increased by Rs100-150 per bag YoY due to higher fuel costs from international coal and diesel prices. Finance costs for the cement sector are expected to rise 51 percent YoY to Rs3.4 billion in Q1FY27, primarily due to debt raised for acquiring Pioneer Cement Limited (PIOC). Maple Leaf Cement Limited (MLCF) accounts for nearly 57 percent of the sector's finance costs. Gross margins are expected to stand at 35 percent in Q1FY27, down from 36 percent in 4QFY26 and 33 percent in 1QFY26. The YoY improvement is due to higher retention prices outpacing coal costs, supported by increased use of renewables in power mix. Other income is estimated at Rs14.2 billion in Q1FY27, up 9 percent YoY and 27 percent QoQ, driven by LUCK's dividend. LUCK is projected to report consolidated earnings per share of Rs16.7 in Q1FY27, up 11 percent YoY but down 3 percent QoQ. Unconsolidated EPS for KOHC is expected to be Rs3.1 in Q1FY27, down 4 percent YoY and 14 percent QoQ. FCCL is forecast to report EPS of Rs2.1 in Q1FY27, up 56 percent YoY but down 5 percent QoQ. DGKC is projected to report unconsolidated EPS of Rs7.5 in Q1FY27, up 52 percent YoY and 7 percent QoQ. CHCC is expected to report EPS of Rs10.50 in Q1FY27, up 18 percent QoQ but down 2 percent YoY. MLCF's earnings per share are forecast to be Rs3.8 in Q1FY27, up 47 percent YoY but down 11 percent QoQ.",
  "summary": "KARACHI: Profitability of the topline cement universe is expected to increase 16 percent year-on-year (YoY) to Rs32.4 billion in 1QFY27 from Rs27.8 billion in 1QFY26, according to Topline Research. The research house expects sector profitability to increase 16 percent quarter-on-quarter (QoQ) as well. The YoY increase is primarily attributed to higher net sales amid increased retention prices,…",
  "key_points": [
    "Cement sector profits forecast to rise 16% YoY to Rs32.4bn",
    "Q1FY27 sector sales projected at Rs143bn, 25% YoY growth",
    "Finance costs expected to increase 51% YoY to Rs3.4bn"
  ],
  "editors_take": "The expected surge in cement sector profits signals a favorable outlook for major players, with varying degrees of growth anticipated for individual companies' earnings per share in the first quarter.",
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}