Pioneer Cement Limited (PIOC) announced its 3QFY26 financial results on the PSX today, according to a BMA Research report. PIOC recorded earnings of PkR 1,522mn (EPS: PkR 6.70) in 3QFY26, compared with a profit of PkR 974mn in 3QFY25 (EPS: PkR 4.29) and PkR 1,600mn (EPS: PkR 7.04) in 2QFY26, up 56% YoY and down 5% QoQ. The 3QFY26 results were in line with our expectations.

This takes 9MFY26 earnings to PkR 19.35/sh vs 16.50/sh, up by 17% YoY.

Along with the results, the company did not announce a cash dividend.

The company’s topline increased by 27% YoY but declined by 2% QoQ, reaching PKR 10.0bn. The YoY growth in sales is likely driven by higher cement dispatches and increased cement prices, while the QoQ decline is attributable to lower cement dispatches.

PIOC’s local dispatches in 3QFY26 totalled 0.63mn tons, increasing by 20% YoY but declining by 10% QoQ. The company’s gross margins stood at 29.0% in 3QFY26, compared to 25.5% in 3QFY25 and 29.6% in 2QFY26. We believe the decline in gross margins is attributable to higher coal prices and increased inland freight charges. The company reported a distribution cost of PkR 42mn for 3QFY26, reflecting an increase of 5% YoY and 6% QoQ. Other income increased by 61% YoY and 126% QoQ to PkR 63mn.

Finance costs clocked in at PKR 165mn, declining by 42% YoY and 8% QoQ. We believe the reduction in finance costs is driven by a lower KIBOR rate and debt repayments, as PIOC’s total debt decreased from PKR 9.3bn in Mar-25 to PKR 4.9bn in Mar-26. Effective tax rate clocked in at 41.6% in 3QFY26 compared to 38.4% in 3QFY25 and 41.6% in 2QFY26.