LUCK

⚡ Flash Summary

Lucky Cement Limited’s financial results for the 1st quarter ended September 30, 2025, show a mixed performance. On a consolidated basis, gross revenue increased by 13.5% to PKR 155.4 billion, driven by improved performance of the company and its subsidiaries. However, gross profit decreased slightly by 0.8% to PKR 31.481 billion. The net profit attributable to shareholders increased significantly, resulting in an EPS of PKR 15.01, a 22.7% increase compared to the same period last year, indicating improved efficiency and profitability.

📌 Key Takeaways

• ⬆️ Gross revenue increased by 13.5% to PKR 155.4 billion compared to PKR 136.8 billion in SPLY.
• 📉 Gross profit slightly decreased by 0.8% to PKR 31.481 billion.
• 🚀 Earnings per share (EPS) increased by 22.7% to PKR 15.01 compared to PKR 12.24 in SPLY.
• 🏭 Domestic cement operations revenue increased by 15.2%, driven by a 17.7% increase in local sales volumes.
• 🌍 Export volumes of cement saw a modest increase of 1.2%.
• 🤝 Cement production facilities in Iraq and Congo continued to drive profitability with improved margins.
• 📉 Lucky Core Industries’ (LCI) net turnover decreased by 7% to PKR 28.6 billion.
• 💊 Pharmaceuticals and Animal Health businesses saw growth momentum with increases of 25% and 22%, respectively.
• ⚡ The Lucky Electric Power Company Limited (LEPCL) plant maintained 100% commercial availability.
• 🚗 The automobile sector saw a 52% volume increase compared to last year.
• 📱 Smartphone imports registered a 143% volume increase and a 114% value increase.
• ⛏️ Strategic expansion in copper and gold mining through National Resources (Pvt.) Limited (NRL).
• 🌱 Continued emphasis on environmental stewardship and community development initiatives.

🎯 Investment Thesis

Lucky Cement is a BUY. The company shows strong revenue growth and improved EPS, reflecting efficient operations and market demand. Strategic expansions in mining and stable performance of subsidiaries provide long-term growth potential. The company’s commitment to environmental and community initiatives adds to its appeal. Price Target: PKR 600 (20% upside from current levels). Time Horizon: Medium Term (12-18 months).

⚡ Flash Summary

Lucky Cement Limited’s Q1 FY2026 report reveals a company navigating a recovering Pakistani economy with cautious optimism. Consolidated gross revenue increased by 13.5% YoY to PKR 155.4 billion, driven by improved performance of the company and its subsidiaries, while consolidated net profit surged by 22.7% resulting in an EPS of PKR 15.01. The company is expanding both locally and internationally with an expansion of cement production capacity of 0.65 million tons per annum at Samawah, Iraq. However, the company faces challenges such as cheaper imports impacting its polyester, soda ash, and chemicals businesses.

📌 Key Takeaways

• 📈 Consolidated gross revenue increased by 13.5% YoY, reaching PKR 155.4 billion.
• 💰 Consolidated net profit increased by 22.7% YoY to PKR 23.6 billion.
• ⭐ Earnings Per Share (EPS) increased by 22.7% to PKR 15.01.
• 🏭 Domestic cement operations revenue increased by 15.2% YoY.
• 🌍 Local sales volumes grew by 17.7%, outperforming the overall cement industry’s 15.0% growth.
• 🇮🇶 Foreign cement operations in Iraq and Congo continued to drive profitability with improved margins.
• 📉 Lucky Core Industries’ (LCI) net turnover decreased by 7% to PKR 28.6 billion due to lower revenues in some sectors.
• 💊 Pharmaceuticals and Animal Health businesses of LCI showed growth, increasing by 25% and 22% respectively.
• 🚗 Automobile sector demonstrated improved volumes, with an overall increase of 52% YoY.
• 📱 Smartphone imports registered a substantial increase of 143% in volume and 114% in value YoY.
• ⚡ The 660 MW Lucky Electric Power Company Limited (LEPCL) plant maintained 100% commercial availability.
• ✔️ Pakistan’s domestic cement sales volumes increased by 15%, reaching 9.58 million tons.
• 🌍 Exports also grew by 20.8% to 2.59 million tons.
• ⛏️ Strategic expansion in copper and gold mining through National Resources (Pvt.) Limited (NRL).
• 🌱 Cement production capacity expansion of 0.65 million tons per annum at Samawah, Iraq is progressing.

🎯 Investment Thesis

Lucky Cement is a BUY. The company has demonstrated strong financial performance in Q1 FY2026, with significant growth in revenue, net profit, and EPS. The company is well-positioned to capitalize on the recovering Pakistani economy, supported by improvements in industrial activity, fiscal discipline, and investor confidence. Key drivers for growth include the cement production capacity expansion in Iraq. The company’s EPS growth and industry performance make it an attractive investment.