Mid-Tier Cement 1HFY26: Attock and Power Cement Profits Surge, Cherat Holds at Rs2 Billion

The cement recovery in the first half of FY26 was not limited to the large producers. The mid-tier names improved too, helped by stronger volumes, better margins and, crucially, lower financing costs as interest rates came down from their peak earlier in the cycle. Attock Cement and Power Cement stood out, while Cherat Cement held a steady quarter against softer pricing.

What the mid-tier cement results showed

Attock Cement had a strong half, with profit jumping to Rs1.61 billion from Rs643 million a year earlier, about 2.5 times higher, as revenue rose to Rs22.10 billion from Rs15.35 billion. Power Cement showed a clear improvement: net sales rose 19 percent to Rs16.46 billion, gross profit climbed 60 percent to Rs5.98 billion, and net finance costs fell 48 percent to Rs0.98 billion, helped by lower interest rates, reduced borrowings and better financial management.

Cherat Cement posted a net profit of Rs2 billion for the December quarter, reported on 18 February 2026. Its net sales fell 11 percent to Rs9.4 billion, mainly on lower retention prices and a small dip in volumes, so the profit held up even as the topline softened.

Why lower rates matter for cement stocks

Cement is capital heavy and often carries significant debt from building or expanding plants. When the policy rate falls, finance costs drop, and that flows straight to profit, as Power Cement's 48 percent cut in net finance costs shows. Volumes and retention prices, the net price a maker keeps after discounts, do the rest. The mix here is a recovery led by a combination of better volumes, improving margins and cheaper debt, partly offset at Cherat by softer pricing.

Which stocks, and why

Attock Cement and Power Cement are clear positives, with Attock more than doubling profit and Power lifting margins while slashing finance costs. Cherat Cement is neutral: a Rs2 billion quarter is respectable, but falling retention prices and slightly lower volumes mean it held its ground rather than advanced. Together they confirm the cement recovery ran across the sector, not just the largest names, though pricing remains the variable to watch.

What to watch

The signals to track are cement dispatches, retention prices, coal and energy costs, and the interest rate, which drives both financing costs and construction demand. The April 2026 rate hike is a headwind to that demand at the margin. Watch whether retention prices stabilise and whether volume growth holds, since those will decide if the mid-tier recovery continues.