AHL Research has released a report reviewing D.G. Khan Cement Company’s results, noting an EPS of PKR 4.93 for 1QFY26.

• DGKC posted Profit after Tax (PAT) of PKR 2.2bn (2.7x YoY); EPS at PKR 4.93/share in 1QFY26. The substantial increase in profits is due to higher Net Revenue, better gross margins, and lower finance costs.

Result Highlights

• Net Revenue for 1QFY26 was recorded at PKR 19.8bn (+29% YoY). Higher revenue is mainly due to higher domestic and export dispatches and higher retention prices. To recall, in 1QFY26, domestic dispatches increased by 16% YoY to 0.86mn tons, and export dispatches increased by 10% YoY to 0.48mn tons.
• Gross margins in 1QFY26 were recorded at 21.7% compared to 19.6% in 1QFY25 and 31.8% in 4QFY25.
• Distribution expenses increased by 7% YoY to PKR 872mn, mainly due to higher domestic and export dispatches.
• Finance costs fell 73% YoY and by 25% QoQ to PKR 431mn in 1QFY26. Lower interest rates and reduced borrowings drove the sharp reduction.
• Effective tax rate in 1QFY26 stood at 37.0% compared to 39.0% in 1QFY25.