⚡ Flash Summary
Power Cement Limited (POWER) reported strong Q1 2026 results, with a significant turnaround from loss to profit. Revenue increased by 55% to PKR 7.81 billion, driven by higher demand and improved sales mix, including increased export dispatches. Gross profit surged by 119% due to enhanced production efficiencies and effective cost management. The company’s improved performance reflects resilience amidst challenging market conditions, supported by growing international demand and better alignment of supply with demand.
📌 Key Takeaways
- 📈 Net sales revenue increased by 55% to PKR 7.81 billion compared to PKR 5.05 billion in Q1 2025.
- 💰 Gross profit rose by 119% to PKR 2.71 billion, driven by better cost management and production efficiency.
- 💪 EBITDA increased by 124% to PKR 1.97 billion from PKR 880 million year-over-year.
- 🚀 Operating profit increased by 159% to PKR 1.76 billion compared to PKR 680 million in Q1 2025.
- 📉 Finance costs decreased by 55% to PKR 505 million from PKR 1.11 billion, benefiting from lower interest rates.
- ✅ Profit before tax stood at PKR 1.25 billion, a significant turnaround from a loss of PKR 429 million in Q1 2025.
- 🧾 Profit after tax was PKR 804 million, compared to a loss of PKR 492 million in the corresponding quarter.
- 💲 Basic EPS improved to PKR 0.60 versus a loss per share of PKR 0.55 last year.
- 🚚 Total cement dispatches increased by 16.25% to 12.16 million tons.
- 🏘️ Domestic dispatches rose by 15.08% to 9.57 million tons.
- 🌍 Export dispatches grew by 20.81% to 2.59 million tons.
- 🏭 Clinker production increased by 6% to 506,574 tons.
- 🧱 Cement production increased by 28% to 417,286 tons.
- 📉 Finance income / (cost) – net stood at (504,701) ‘000 Rupees compared to (1,108,899) ‘000 Rupees in the previous year.
🎯 Investment Thesis
Power Cement presents a compelling BUY opportunity based on its robust Q1 2026 results and improved financial performance. The company’s strategic focus on export markets, effective cost management, and reduced finance costs have driven a significant turnaround in profitability. With expected industry growth supported by infrastructure projects and a gradual recovery in private construction, POWER is well-positioned for sustained growth and value creation. Considering the company’s strong financial metrics and positive outlook, a target price of PKR 35, representing a 20% upside, is justified over a medium-term horizon of 12-18 months.
Disclaimer: AI-generated analysis. Not financial advice.