Pakistan Cement 2QFY26 Profit Rs35 Billion, Margins Slip: Lucky, DG Khan, Maple Leaf Results

Pakistan's listed cement makers reported higher profits for the December 2025 quarter, but the gains came with a catch. The sector earned a combined Rs35.01 billion in 2QFY26, yet margins on each tonne of cement narrowed, showing that volumes and other income, rather than richer pricing, did much of the work. The standouts were Lucky Cement and DG Khan, both of which posted strong half year numbers.

What the cement results showed

For the half year ended 31 December 2025, Lucky Cement posted profit after tax of about Rs48 billion, up 10 percent year on year, with second quarter profit jumping about 68 percent to Rs23.2 billion from Rs13.8 billion a year earlier. D.G. Khan Cement reported half year profit of Rs5.85 billion, a 66 percent rise from Rs3.52 billion, on revenue up 10 percent to Rs40.59 billion. Maple Leaf Cement had earlier posted first quarter earnings of Rs2.7 billion, more than double the year before.

Why the results matter for cement stocks

Cement earnings turn on three things: how many tonnes are sold, the price per bag, and the cost of inputs like coal and power. When profit grows while the margin per tonne shrinks, it usually means companies are selling more, leaning on exports, or booking income outside the core kiln business, while the spread on each tonne is under pressure. That is a healthier picture than falling profit, but it is softer than a quarter where pricing power is clearly expanding.

Which stocks, and why

Lucky Cement is the clearest performer, with the largest absolute profit in the group and a sharp jump in second quarter earnings. D.G. Khan Cement delivered the biggest percentage gain among the large names, lifting half year profit two thirds higher. Maple Leaf Cement more than doubled first quarter profit, a strong start to its year. The read on all three is positive, but it sits at a measured level rather than the top, because the sector wide squeeze on per tonne margins is a real caveat to the headline growth.

What to watch

The factors to track are cement dispatches, the coal price, power costs and the interest rate, since cheaper credit supports the construction demand these companies depend on. The April 2026 policy rate hike works against that demand at the margin. Watch whether volumes hold up, whether margins stabilise as costs settle, and how much development and construction spending flows through, because those will decide if the profit growth seen here continues.