Karachi: Lucky Cement Limited, in its 1st Quarterly Report for 2026, announced a 6.0% increase in gross revenue, reaching PKR 166.3 billion, compared to PKR 157.0 billion in the corresponding period last year. The report, dated October 30, 2026, highlighted the company's financial performance amidst a gradually recovering Pakistani economy, though still facing significant challenges such as elevated energy prices and supply chain disruptions.
The first quarter of FY 2027 saw Pakistan's economy transitioning from stabilization towards growth, supported by resilient remittances and stronger foreign exchange reserves. However, the current account deficit widened to USD 874 million from USD 755 million in the same period the previous year. Despite this, workers' remittances increased by 14.0% to USD 10.9 billion, providing some cushion against the trade deficit. According to information available from the Pakistan Stock Exchange (PSX), Lucky Cement's net revenue rose by 5.3% to PKR 131.9 billion, while the net profit attributable to shareholders slightly decreased by 1.7%, totaling PKR 21.7 billion.
The company's local cement operations experienced a significant 23.3% growth in gross sales revenue, driven by a 13.0% increase in domestic sales volumes. This outperformed the broader industry, which saw an 8.7% growth in domestic sales. Conversely, export volumes declined by 1.9%, a less severe drop compared to the industry's 11.2% decrease. The company's clinker production increased by 8.5%, and cement production rose by 13.7% compared to the same period last year.
Lucky Core Industries (LCI), a subsidiary of Lucky Cement, reported a net turnover of PKR 29.9 billion, a 4% increase year-on-year. The Chemicals, Polyester, and Animal Health & Agri Sciences sectors recorded positive revenue growth, while the Soda Ash business faced a 5% decline. The overall operating result for LCI dropped by 25%, primarily due to challenges in the Soda Ash and Pharmaceuticals sectors.
In the automobiles & mobile phones segment, the increase in sales tax on Hybrid Electric Vehicles (HEVs) resulted in reduced sales volumes, though the internal combustion engine vehicle segment saw growth. Smartphone imports faced a significant decline of 56% in volume and 32% in value due to rising DRAM prices.
The power segment, represented by the 660 MW Lucky Electric Power Company Limited (LEPCL) plant, maintained a 98.9% commercial availability, delivering a net electrical output of 807.5 GWh. The Sindh Engro Coal Mining Company declared the Commercial Operations Date for its Phase III expansion, ensuring continued fuel supply to the power plant.
Lucky Cement's performance in the first quarter reflects both the opportunities and obstacles in the current economic environment. With a focus on cost optimization and risk management, the company remains committed to creating sustainable value for its stakeholders while navigating the challenges posed by elevated input costs and geopolitical uncertainties.