Attock Cement Pakistan Ltd (ACPL) held its corporate briefing to discuss FY26 results and future outlook, with AKD Securities Limited reporting robust earnings growth and improved operational performance. The company’s earnings nearly doubled to PKR 3.4bn (EPS: PKR 24.9) in FY26, compared to PKR 1.7bn (EPS: PKR 12.6) last year, reflecting a 97% YoY increase. Revenue rose 33% YoY to PKR 44.3bn, driven by higher offtakes and improved retention prices. Gross margins expanded to 27% from 24% in FY25, supported by a 5% YoY rise in net retention prices.

Total offtakes climbed 27% YoY, with utilization reaching 81% versus 68% previously. Local dispatches rose 10% YoY to 1.3mn tons, while export dispatches surged 41% YoY to 2.2mn tons, led by clinker exports. The sales mix comprised 58% clinker, 38% local cement, and 4% export cement. Industry-wide dispatches grew 7% YoY to 50.5mn tons, lifting overall utilization to 60%.

Production costs remained stable at PKR 9,173/ton, with fuel costs down 7% YoY due to lower international coal prices. Weighted average power cost stood at PKR 15/unit, with 76% of requirements met through own generation via WHR, coal-fired boilers, solar, and wind. The power mix included 29% WHR, 29% coal-fired, 24% grid, 14% solar, and 4% wind.

Significantly, Fauji Cement Company Ltd (FCCL) and Kot Addu Power Company Ltd (KAPCO) completed the acquisition of a controlling stake (~92%) in ACPL in April 2026. The board has authorized management to explore the feasibility of a potential merger with FCCL, which could reshape the cement sector landscape.

AKD Securities noted that ACPL’s strong earnings momentum, stable costs, and diversified power mix position the company well for sustained growth, while the potential merger with FCCL may unlock further synergies.