Karachi: D.G. Khan Cement Company Ltd. (DGKC) announced its fourth-quarter financial results for fiscal year 2026, revealing a marginal decrease in earnings to PkR3.1 billion, or PkR7.0 per share, compared to PkR3.2 billion, or PkR7.2 per share, during the same period last year. The 3% year-over-year decline in earnings was attributed to reduced offtakes and increased coal costs. The company also declared a cash dividend of PkR1.0 per share, with an annual payout ratio of 4%.

According to AKD Securities Limited, the company's revenue experienced a 13% increase year-over-year, reaching PkR19.0 billion, up from PkR16.8 billion in the same period last year. This growth was primarily driven by a 13% rise in retention prices and increased local offtakes, which effectively counterbalanced a reduction in export volumes. Despite the revenue growth, gross margins contracted to 23.8% from 31.8% in the previous year, largely due to the heightened cost of coal.

AKD Securities Limited maintains a 'BUY' recommendation on DGKC stock, with a projected target price of PkR389 per share by December 2026. The positive outlook is based on anticipated improvements in profitability, supported by favorable gross margins, higher offtakes, and reduced interest rates.