Karachi: Cherat Cement Company Ltd. posted a 16% year-on-year decline in third-quarter FY26 profit after tax to Rs1.4 billion, translating into earnings per share (EPS) of Rs7.2, compared to Rs1.7 billion or EPS of Rs8.7 in the same period last year. The decline was mainly attributed to higher coal prices and weaker sales volumes.
According to a research note issued by AKD Securities Limited, the company’s quarterly revenue rose marginally by 1% YoY to Rs7.9 billion, supported by a 3% increase in local cement prices. However, this was offset by a 3% drop in total offtakes, largely due to reduced exports following the closure of the Afghan border.
Gross margins narrowed sharply to 31% from 40% a year earlier as rising coal costs increased production expenses. Operating expenses also climbed 9% YoY to Rs384 million, mainly due to higher distribution and fuel costs.
On the positive side, other income surged 67% YoY to Rs447 million, driven by higher cash balances and short-term investments. Meanwhile, finance costs declined 23% YoY to Rs95 million as interest rates eased and debt levels fell.
Despite the earnings pressure, AKD Securities maintained its “Buy” rating on Cherat Cement Company Ltd. with a December 2026 target price of Rs640 per share. The brokerage cited expected demand recovery, improving macroeconomic conditions, lower grid tariffs, expansion in solar capacity, and lower regional royalty rates as key growth drivers.
