AHL Research has released its earnings preview for the cement sector, projecting mixed results for leading firms in the first quarter of FY27. Lucky Cement’s consolidated earnings are expected to decline 6 percent year-on-year and 19 percent quarter-on-quarter to PKR 14.04 per share, mainly due to margin compression from higher fuel costs and weaker polyester and soda ash segments. On an unconsolidated basis, earnings are projected at PKR 9.09 per share, down 9 percent YoY but up 35 percent QoQ.

DG Khan Cement is forecast to post consolidated earnings of PKR 7.24 per share, up 46 percent YoY, supported by 19 percent growth in dispatches and higher other income. Fauji Cement is expected to record PKR 1.7 per share, up 32 percent YoY, driven by stronger local dispatches and lower finance costs, though margins contracted QoQ.

Kohat Cement’s earnings are projected at PKR 3.02 per share, down 6 percent YoY, with dispatches down 3 percent as exports fell to zero amid the Afghan border closure. Maple Leaf Cement is expected to post PKR 2.77 per share, up 6 percent YoY, aided by the PIOC acquisition, though margins declined from 44 percent in the previous quarter to 34 percent.

Overall, higher coal and freight costs are expected to weigh on margins despite improved retention prices and growth in dispatches.