Karachi: Profitability within the AKD Cement Universe is expected to decline by 2% year-over-year in the second quarter of fiscal year 2026, driven mainly by a 6% decrease in domestic cement prices in the northern region of the country.

According to AKD Securities Limited, the earnings of Lucky Cement Limited (LUCK) and Fauji Cement Company Limited (FCCL) are projected to remain stable. This stability is attributed to increased volumetric sales and additional income, which are expected to counterbalance the effects of declining prices. However, other companies in the sector, including Maple Leaf Cement Factory Limited (MLCF), Cherat Cement Company Limited (CHCC), Pioneer Cement Limited (PIOC), Kohat Cement Company Limited (KOHC), and D.G. Khan Cement Company Limited (DGKC), are anticipated to experience a decrease in profitability. The decline is linked to both the reduced prices and higher coal costs in the North.

The report maintains a positive outlook for the cement sector, driven by a recovery in demand. LUCK and FCCL are highlighted as preferred choices within this positive projection.