D.G. Khan Cement Company Limited (DGKC) is expected to post a profit after tax of PKR 2.95 billion (EPS: PKR 6.73) for 1QFY27, up 36.5% year-on-year, according to AHL Research. The growth is attributed to higher local and export dispatches along with improved retention prices.

Net sales are projected to increase 24.4% YoY, while gross margins are expected to improve to 23.2%. However, margins may ease slightly quarter-to-quarter due to higher coal and transportation costs.

AHL Research noted that local dispatches are likely to rise 11% YoY to 0.96 million tons, while exports are expected to surge 34% YoY to 0.65 million tons, supported by strong overseas demand despite challenges at the Durand Line border.

The research house said lower finance costs, aided by a softer interest rate environment, are also expected to support earnings growth.