DGKC reported earnings per share of PKR 19.80 in FY25 (F24: 1.24). In 1QFY26, the EPS remained PKR 4.93 (1QFY25: 1.84). DGKC demonstrated significant resilience in FY25, operating at 79% sales utilization, which was meaningfully higher than the industry average of 55%.
This stability is attributed to the balanced distribution of North/South plants, the ability to serve export markets, and the strength of the operational structure. Total offtake increased by just over 2%, clocking in at 46.2 million tons. The local market remained subdued for the second consecutive year.
The industry momentum was carried by exports, which increased by 30%. The local market remained subdued for the second consecutive year. The industry momentum was carried by exports, which increased by 30%. DGKC continues to invest in efficiency. It added 3 MW to the solar power plant in Khairpur, which now totals 9.9 MW. DG Khan Cement USA LLC was incorporated during FY25 to assist with penetration in that market, but it is not yet operational. Nishat Packaging Limited serves as the major supplier for DGKC’s packaging needs.
It returned to profitability during the year, largely due to a one-time gain on the sale of a paper bag line. A new line, commissioned in 3QFY25, improved cost efficiency. Management notes that the polypropylene market is becoming increasingly competitive due to the industry shift away from paper bags.
Going forward, management views that the sector’s performance depends heavily on the policy environment, particularly government actions on housing, infrastructure, and taxation. Improvement has already been observed in 1QFY26, with an uptake in both local and export offtake. Management is cautiously optimistic. Post-flood rebuilding activity is expected to lift medium-term demand for cement.
The company expects double-digit growth for FY26/27. Management is exploring Middle East market for exports. USA remained a favorable market for export in terms of margin. Management has planned brownfield expansion in the North region, contingent upon improvement in the demand.
Important Disclosures
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