Thatta Cement Company Limited (PSX: THCCL) has reported a robust 52% surge in its net profit for the nine months ended March 31, 2026, recording Rs2.22 billion compared to Rs1.46 billion in the corresponding period last year. The impressive bottom-line performance translated into a significant expansion of earnings per share (EPS) to Rs5.17 from Rs3.59 in 9MFY25.
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The primary driver of this profit expansion was powerful top-line growth that comfortably outpaced the rise in direct costs. THCCL’s net revenue posted a remarkable 50% year-on-year increase, rising to Rs9.42 billion from Rs6.30 billion, reflecting strong demand in the cement sector.
| Metric | 9MFY26 | 9MFY25 | Change |
|---|---|---|---|
| Net Profit | Rs2.22bn | Rs1.46bn | +52% |
| Earnings Per Share (EPS) | Rs5.17 | Rs3.59 | +44% |
| Net Revenue | Rs9.42bn | Rs6.30bn | +50% |
| Gross Profit | Rs3.28bn | Rs1.90bn | +73% |
| Operating Profit | Rs3.16bn | Rs2.36bn | +34% |
Revenue and Margin Performance
Concurrently, the cost of sales grew at a comparatively slower pace of 40%, reaching Rs6.14 billion. This favorable cost dynamic allowed gross profit to register an impressive 73% expansion, settling at Rs3.28 billion up from Rs1.90 billion in the prior year, reflecting significant margin improvement.
| Expense Category | 9MFY26 | 9MFY25 | Change |
|---|---|---|---|
| Cost of Sales | Rs6.14bn | Rs4.40bn | +40% |
| Selling & Distribution | Rs47.52m | Rs38.44m | +24% |
| Administrative Expenses | Rs164.43m | Rs113.99m | +44% |
| Other Operating Expenses | Rs92.53m | Rs179.06m | -48% |
| Finance Cost | Rs414.29m | Rs167.90m | +147% |
Operational Performance
On the operational front, the company navigated rising overhead pressures across its expense lines. Selling and distribution costs rose by 24% to Rs47.52 million, and administrative expenses climbed by 44% to Rs164.43 million. Despite these rising operational costs, the strong gross margin expansion pushed operating profit before other items up by a substantial 75% to Rs3.07 billion.
Below the operating line, THCCL experienced mixed financial dynamics. Other income declined sharply by 77% to Rs179.17 million from Rs791.81 million, while other operating expenses contracted favorably by 48% to Rs92.53 million. After netting these items, operating profit settled at Rs3.16 billion, still reflecting a solid 34% year-on-year growth.
Finance Costs and Taxation
However, the company faced a significantly heavier debt-servicing burden, with finance costs surging 147% to Rs414.29 million from Rs167.90 million in the prior-year period. Despite elevated finance costs, the strength of core operating margins pushed profit before taxation up by 25% to Rs2.75 billion.
The company additionally benefited from a meaningfully lower taxation charge of Rs520.73 million, down 29% year-on-year, which provided a further boost to the bottom line. After accounting for taxation, Thatta Cement successfully secured its 52% leap in final net profit, closing the nine-month period at Rs2.22 billion.
About Thatta Cement Company Limited
Thatta Cement Company Limited (PSX: THCCL) is a leading cement manufacturer in Pakistan, producing high-quality cement for domestic and export markets. The company is known for its state-of-the-art manufacturing facility and commitment to operational excellence in Pakistan’s construction sector.
