Lucky Cement Limited (PSX: LUCK) reported a profit after taxation of Rs48.03 billion for the half year ended December 31, 2025, reflecting a year-on-year increase of 10.36% compared with Rs43.52bn recorded in the same period last year. The company’s financial performance was supported by revenue growth, lower finance costs, and higher income from joint ventures, despite margin pressure at the gross profit level.
Earnings per share for the period improved to Rs30.45, marking a 13.32% increase from Rs26.87 in the corresponding period of last year. The improvement in earnings highlights stronger bottom-line performance amid a challenging cost environment for the cement sector.
Gross revenue during the first half of FY26 increased by 11.13% year-on-year to Rs310.46bn. The growth was driven primarily by higher dispatch volumes and improved pricing dynamics across key markets. After accounting for sales tax, excise duty, rebates, incentives, and commissions amounting to Rs63.37bn, net revenue rose 10.07% year-on-year to Rs247.09bn.
Cost of sales increased at a faster pace than revenue, rising 15.54% year-on-year to Rs184.13bn. This escalation weighed on profitability, resulting in a 3.32% year-on-year decline in gross profit, which stood at Rs62.95bn for the period. The higher cost base reflected increased energy, raw material, and operational expenses, leading to margin compression during the half year.
At the operating level, distribution costs declined by 11.29% year-on-year to Rs8.12bn, providing some relief to operating margins. However, administrative expenses increased by 13.93% year-on-year to Rs4.68bn, while other expenses surged sharply by 51.85% year-on-year to Rs3.63bn, partially offsetting the benefit of lower distribution costs.
Finance costs declined significantly by 35.01% year-on-year to Rs9.67bn. The reduction was mainly attributed to lower borrowing costs and improved debt management, reflecting a more favorable interest rate environment and prudent financial strategy. The decline in finance expenses played a key role in supporting overall profitability during the period.
Other income increased by 14.78% year-on-year to Rs12.33bn, while the share of profit from joint ventures and associates rose 14.93% year-on-year to Rs10.55bn. These income streams provided additional support to earnings and helped offset the impact of higher operating and production costs.
As a result, profit before levy and taxation increased by 9.58% year-on-year to Rs59.75bn. Following a lower levy charge of Rs255.99 million, profit before taxation stood at Rs59.49bn, up 9.98% compared to the same period last year.
Taxation expense increased by 8.41% year-on-year to Rs11.46bn, leading to a profit after taxation of Rs48.03bn for the first half of FY26. Profit attributable to owners of the holding company rose by 13.33% year-on-year to Rs44.61bn, while profit attributable to non-controlling interest declined by 17.75% year-on-year to Rs3.42bn, indicating improved earnings quality for shareholders.
Lucky Cement’s performance during the first half of FY26 reflects resilience in earnings despite cost pressures across the cement industry. Revenue growth, lower finance costs, and stronger contributions from joint ventures enabled the company to deliver double-digit profit growth, positioning it favorably within Pakistan’s listed corporate sector.
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