Lucky Cement Limited (LUCK) expects domestic cement demand to strengthen in FY27, driven by housing-sector incentives, infrastructure spending, and lower financing costs, according to insights shared during a corporate briefing, as reported by research house AHL Research. Management noted that domestic sales continue to generate higher margins than exports, suggesting that improved local demand could support profitability even if exports moderate. During FY26, local cement dispatches rose 10.1% year-on-year to 6.5 million tons, while exports declined 8.2% to 3.1 million tons from a relatively high base recorded in the preceding year.
According to AHL Research, the company maintained its domestic market share at about 15.6% and described annual exports of around 3.1 million tons as sustainable under its current production capacity, subject to local market requirements.
The company also highlighted progress in reducing energy costs. An additional 15MW solar project at its Karachi facility has commenced operations, increasing total solar generation capacity to 89.3MW alongside 28.8MW of wind power. Management said renewable energy sources and waste heat recovery now collectively meet about 55% of the company’s power needs.
On operational efficiency, management told participants that UC3 technology has been commissioned across four production lines, reducing coal consumption and increasing clinker output. As a result, Lucky Cement’s annual domestic production capacity has been revised upward to about 15.6 million tons.
The company is also pursuing international growth. Management disclosed that a 1.6 million-ton expansion project in the Democratic Republic of Congo will double capacity there to 3.2 million tons annually, with completion targeted within 18 months from the commencement of construction. Future overseas investments are expected to remain focused on African markets.
Commenting on regional operations, management said cement demand and pricing in Iraq have shown signs of recovery after recent disruptions, while improved availability of gas and furnace oil has improved operating conditions in recent weeks.
In the automobile segment, subsidiary Lucky Motor Corporation plans to commence local production of GAC vehicles from the first quarter of CY27. The company plans to introduce about one locally assembled model each quarter over the next three to four quarters, including vehicles under the GAC, Aion, and Hyptec brands.
AHL Research noted that Lucky Cement’s stock is currently trading at forward FY27 and FY28 price-to-earnings multiples of 6.0x and 4.5x, respectively.