Shares of D.G. Khan Cement Company Limited (DGKC) remained in focus after the company reported a strong revenue increase in the first quarter of FY27, supported by higher local and export dispatches, although rising costs pressured profitability.

According to a research report issued by AKD Securities, DGKC posted earnings of Rs2.3 billion (EPS: Rs5.3) for 1QFY27, compared with Rs2.2 billion (EPS: Rs4.9) in the corresponding period last year, reflecting an 8 percent year-on-year increase. However, earnings fell 24 percent quarter-on-quarter and missed market expectations due to lower-than-anticipated gross margins.

The research house noted that DGKC’s revenue surged 16 percent year-on-year to Rs23 billion as total cement offtakes climbed 19 percent to 1.6 million tonnes. Local dispatches rose 11 percent to 1.0 million tonnes, while exports jumped 33 percent to 0.7 million tonnes.

Gross margins contracted to 21.5 percent from 21.7 percent a year earlier amid a higher share of exports in the sales mix and elevated coal prices. Distribution expenses also rose sharply due to higher export-related freight costs, while finance costs grew 78 percent year-on-year on higher borrowings.

Despite the margin pressure, AKD Securities maintained a positive outlook on the stock, citing expectations of improved profitability driven by supportive gross margins, stronger sales volumes and lower interest rates going forward. The brokerage has retained its “Buy” recommendation on DGKC with a December 2026 target price of Rs389 per share.

According to data available at the Pakistan Stock Exchange (PSX), DGKC remains one of the country’s leading cement manufacturers, with analysts closely watching the sector amid rising export demand and improving construction activity.