Karachi: Dewan Cement Limited (DCL) has released its annual report for the year ending June 30, 2026, highlighting a challenging year with a net loss of Rs. 169.75 million. This performance comes despite a significant rise in net turnover, which increased by 16.75% to Rs. 24.999 billion from Rs. 21.413 billion in the previous year.
The report, dated October 1, 2026, attributes the increased turnover primarily to higher volumes of cement dispatches and improved pricing strategies. However, the company's gross profit rose marginally to Rs. 1.586 billion, up from Rs. 1.546 billion in the previous year, indicating pressure on margins due to rising input costs.
According to information available from the Pakistan Stock Exchange (PSX), the broader cement industry saw a recovery during the fiscal year 2025-26, with total dispatches climbing to 50.36 million tons, driven by a 7% growth in the market. Domestic dispatches accounted for 41.32 million tons, while exports contributed 9.04 million tons.
Despite these improvements at the industry level, DCL's financial performance was adversely impacted by increased fuel and production costs, particularly due to rising international coal prices. The company attempted to mitigate these pressures by utilizing locally sourced coal and optimizing its fuel mix, but these efforts were insufficient to prevent a net loss.
DCL also reported a loss before levies and income tax of Rs. 45.75 million, a significant decline from the profit of Rs. 351.71 million recorded the previous year. The levies and tax expenses, although reduced in deferred tax liabilities, further exacerbated the financial strain.
In its sustainability initiatives, DCL continues to integrate solar power projects, with an installed capacity of up to 6 MW, as part of its commitment to renewable energy. These efforts aim to enhance energy resilience, reduce operational costs, and support environmental objectives.
Looking ahead, DCL plans to expand its renewable energy portfolio further, exploring additional solar installations and other alternative energy sources to enhance operational efficiency and sustainability.
The annual report underscores DCL's ongoing commitment to integrating sustainability into its strategic planning, aiming to create long-term value for stakeholders while contributing to Pakistan's transition towards cleaner energy solutions.