Lucky Cement Limited has continued to record consistent gains in profitability over the past nine months of fiscal year 2026. Lucky Cement Limited has reported that it has registered a profit after tax attributable to the shareholders of Rs63.68 billion for the period of 9MFY26. This is an 11% increase from the same corresponding period of the previous year. The revenue growth and operational efficiency have been the driving factors for this increase.
Consolidated Profit for Q3 FY26 Up by 6% from Previous Year, However Below Market Estimates
The company recorded a consolidated profit after tax of Rs19.07 billion for the quarter ended September 2026, with earnings per share up at Rs13.02 from the previous year, a 6% rise compared to the corresponding period last year. Although the performance was satisfactory due to increased profitability, it slightly undershot market expectations owing to weaker margins and associate performance. There was no declaration of dividends by the company for the quarter, which largely matched market analyst predictions in light of the margin conditions and capital needs for its various business segments.
20% Revenue Growth in Q3, Totalling Rs377bn for Nine Months
The top-line growth trend of Lucky Cement continued. The revenues grew by 20% annually and 5% quarterly, reaching Rs130.2 billion in just the third quarter alone. In the case of nine-month revenues, they amounted to Rs377 billion, showing growth of 13% from 9MFY25.
These two aspects were responsible for the growth in revenues. One aspect was an increase in cement shipments by 5%, as there was a slow stabilisation of construction activity in the country. The other aspect was better performance by its subsidiaries, especially Lucky Motor Corporation, owing to the better state of affairs prevailing in the automotive industry of Pakistan.
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Consolidated Margins Under Pressure Due to Higher Costs
Although there was growth in sales, Lucky Cement witnessed margin pressure for its consolidated operations. Gross margins dropped to 23% for 3QFY26 against 27% in the corresponding period last year and 25% in the immediately preceding quarter. In 9M FY25, gross margins were slightly lower at 25%, down from 28%.
The industry experts believe that the reasons for the thinning margins for the Pakistani cement companies are the high costs of coal, high energy prices, and volatility in foreign exchange rates in FY26. This issue has impacted almost all the cement companies, but Lucky Cement is not an exception to this phenomenon.
Standalone, on the other hand, the outlook appeared somewhat more positive. Gross margins for Lucky Cement increased to 37% during 3QFY26, aided by improved pricing policies and efficiencies within its core cement manufacturing operation.
Associate Income Plummets during Quarter
Income from associates slumped sharply on both annual and quarterly bases, falling 27% and 47%, respectively, to Rs2.72 billion in the quarter ended September 30, 2025. The steep fall in associates’ income was one of the key underperformers in the quarter results. Although the figure declined on a quarterly basis, associate income for the nine months remained positive at 3% annually to reach Rs13.2 billion.
Drop in Finance Costs by 30% in Nine Months
One of the most positive aspects of the results of Lucky Cement for 9MFY26 was the considerable drop in finance costs. Lucky Cement witnessed a decrease of 15% in its finance costs on a yearly basis to Rs4.6 billion in the third quarter. The company saw a decline of 30% in finance costs in the complete period of nine months at Rs14.2 billion, down from Rs20.2 billion during 9MFY25. This drop in finance costs could be attributed to a lower level of borrowings and the company’s ability to raise sufficient cash internally.
