Karachi: Cement dispatches in September 2026 reached 4.6 million tons, marking a 6% year-over-year increase, largely driven by a significant rise in local dispatches from the South. According to JS Global, the southern region experienced a 23% increase in local dispatches, benefiting from a low base and favorable weather conditions. Meanwhile, the northern region saw a more modest growth of 4.7% in local dispatches.

The northern exports remained at a standstill for the 11th consecutive month due to the ongoing closure of the Afghan border. In contrast, exports from the southern region surged by 36%, fueled by strong demand from regional markets and Africa, along with healthy export pricing. Monthly comparisons show a 14.4% rise in dispatches, driven by a 15.4% increase in domestic dispatches, attributed to the low base of the preceding month. During the first quarter of the fiscal year 2027, overall dispatches grew by 3.9% year-over-year, with local dispatches rising by 7.8%.

Despite challenges such as high inflation and a 47% increase in coal prices this calendar year, the cement industry remains optimistic about earnings visibility. The sector is expected to manage these challenges through strategic price adjustments and potential growth in dispatches. Trading at a projected FY27 forward price-to-earnings ratio of 6.44 times, the sector shows a promising outlook compared to the FY26 ratio of 7.63 times.