Pakistan Cables Limited (PCAL) reported earnings per share of PKR 3.05 for FY26, compared to loss per share of PKR 5.15 in FY25. The company has in-house, backward integrated annual capacities of 30,000 metric tons for copper, 30,000 metric tons for aluminum, and 24,000 metric tons for PVC compounding.
The company is currently operating at 50%–60% capacity utilization. Rooftop solar capacity has been increased from 2.0 MW to 2.3 MW. PCAL entered into a 20 year agreement with Clean Energy Modaraba to establish a 7.5 MW wind turbine project at its Nooriabad facility. The project is expected to generate annual energy cost savings of PKR 100–150 million. The long term debt to equity ratio has declined from a peak of 28% to 4%, following repayments of Nooriabad project financing and the TERF facility. Receivables increased from PKR 7.5 billion to PKR 9.2 billion, reflecting substantial credit sales in June.
This increased short term borrowing requirements and kept finance costs elevated. PCAL fully divested its PKR 87 million investment in the construction business to eliminate its exposure to security risks in Balochistan. Aluminum’s contribution to PCAL’s total sales mix increased from 10% to 25%. The company exports to more than 40 countries and accounts for approximately 70% of Pakistan’s total cable exports.
The timing and execution of the DISCO privatization process remain uncertain. Nevertheless, the government’s plans to privatize major distribution companies, including IESCO, FESCO and GEPCO, could drive investment in grid efficiency and support demand for conductors and medium and high voltage cables. PCAL operates as a metal converter, earning a conversion margin. In a strong market, increases in metal prices are passed on to customers.
Pricing lags are managed through one to two month inventory averaging and by locking in final L/C pricing upon shipment arrival. Operating two plants during the transition to Nooriabad resulted in substantial additional overheads, including transportation, accommodation and staffing costs. PCAL also operates with a unionized workforce within a formal corporate structure. With operations now fully consolidated at Nooriabad and green energy projects operational, manufacturing costs are declining, supporting expectations of a recovery in margins. Some DISCOs, including IESCO, are already relatively well managed and efficient. Consequently, their privatization may not immediately translate into substantial grid investment by new owners.
Important Disclosures
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