Karachi: Cherat Cement Company Ltd. (CHCC) reported a decline in its fourth-quarter earnings for the fiscal year 2026, with profits falling by 6% year-over-year to PkR1.7 billion, or PkR8.9 per share. This decrease from PkR1.8 billion, or PkR9.5 per share, in the same period last year was largely due to reduced offtakes and increased coal costs.

According to AKD Securities Limited, CHCC's earnings were in line with expectations. The company declared a final cash payout of PkR4.0 per share, which brings the total fiscal year 2026 payout to PkR5.5 per share. Revenue decreased by 9% year-over-year to PkR8.9 billion, primarily due to an 18% decline in offtakes following the closure of the Afghan border and absence of exports. A 9% increase in retention prices helped mitigate some of the revenue impact.

The company's gross margins contracted to 27.4% from 32.6% in the same period last year, a result of higher coal prices. Additionally, operating expenses rose by 11% year-over-year to PkR443 million, driven mainly by increased administrative expenses.