Karachi: Kohat Cement Company Limited has released its Annual Report for the fiscal year ending June 30, 2026, showcasing a series of strategic developments amid a challenging operating environment. The report, dated October 1, 2026, details the company's financial performance, operational highlights, and future prospects, reflecting resilience and adaptability in the face of market pressures.
For the fiscal year 2025-26, Kohat Cement reported a 2.7% increase in sales revenue, reaching Rs. 38,531 million, compared to Rs. 37,536 million in the previous year. This growth was driven by higher domestic dispatches, which saw a 6.7% increase, driven by an improved economic environment and a revival in construction activities. However, the company's net profit after tax decreased by 7.6% to Rs. 10.70 billion, attributed largely to intense price competition and higher production costs. The return on equity dropped from 24.14% to 18.24%, indicating a big move in profitability metrics.
According to information available from the Pakistan Stock Exchange (PSX), Kohat Cement's shareholders' equity grew significantly to Rs. 58,654 million from Rs. 47,955 million, marking a notable increase in the company's financial foundation. The current ratio improved to 3.75 times from 3.31 times, suggesting enhanced liquidity.
Operationally, the company increased its cement production by 7.4% to 2.52 million metric tons, while total dispatches rose by 8.1% to 2.52 million metric tons. Export dispatches exhibited a significant move, increasing by 161.7% to 54,677 metric tons, despite geopolitical uncertainties affecting regional trade flows.
The company's chairman highlighted the strategic completion of a 2.32 MW solar power installation, expanding on-grid solar capacity to 17.66 MW, as part of efforts to enhance energy efficiency and sustainability. Additionally, the construction of a 28.5 MW coal-fired power plant is underway, expected to become operational by the second quarter of the fiscal year 2027, aimed at reducing power costs and reliance on the National Grid.
In terms of market performance, the company executed a 5:1 stock split, reducing the face value of its shares from PKR 10 to PKR 2, facilitating greater liquidity and market participation. The price-earning ratio saw a moderate move, increasing to 9.46 times from 6.32 times, reflecting market confidence in the company's strategic direction.
Looking ahead, Kohat Cement remains focused on operational excellence and cost optimization, with investments planned in its Greenfield Cement Production Line in Khushab, Punjab, and further expansions in solar and coal power facilities. These initiatives are expected to bolster the company's competitiveness and market position in the evolving economic landscape.