Attock Cement Pakistan Limited (ACPL) posted a 29% year-on-year increase in profit after tax to Rs1.08 billion for the quarter ended September 30, 2026, compared with Rs834.7 million in the corresponding period last year, according to financial results announced by the company and reviewed by Al Habib Capital Markets Limited (AHCML).
Earnings per share rose to Rs7.85 from Rs6.07 in 1QFY26, while quarterly profit also increased 13% on a sequential basis.
According to AHCML, net revenue rose 14% YoY to Rs12 billion and 7% quarter-on-quarter, reflecting continued topline expansion. Gross profit increased 8% YoY to Rs3.25 billion, although gross margin contracted to 27.0% from 28.5% a year earlier, indicating ongoing pressure from production costs. However, gross margin improved 130 basis points to 25.7% in the preceding quarter, suggesting a recovery in profitability.
The brokerage house noted that profit from operations rose 10% YoY to Rs1.79 billion and surged 52% QoQ, supported by stronger gross profitability and lower administrative and distribution expenses on a sequential basis.
AHCML said finance costs fell sharply by 49% YoY to Rs116 million and by 58% QoQ, supporting bottom-line growth amid a lower interest rate environment.
Other income rose 42% YoY to Rs123 million, though it fell 54% from the preceding quarter. Meanwhile, other expenses rose 21% YoY to Rs126 million and increased 75% QoQ, partially offsetting gains in operating profitability.
The research house also noted that the effective tax rate stood at 35.6%, down from 39.5% in the same period last year. Net margin improved to 9.0% from 7.9% in 1QFY26, while return on equity (ROE) and return on assets (ROA) rose to 15.2% and 7.3%, respectively, compared with 11.4% and 5.2% a year earlier.
Despite the earnings improvement, AHCML noted that gross margins remained below last year’s level, reflecting continued cost pressures.
Looking ahead, the brokerage expects ACPL’s earnings to remain supported by improving cement demand, operational efficiencies and lower financing costs. AHCML noted that the stock is currently trading at 7.8x its FY27 estimated earnings at the prevailing market price of Rs236 and said it maintains a constructive view on the company.