KARACHI: Kohat Cement Company Ltd. (KOHC) has reported a significant increase in its financial performance for the first quarter of the fiscal year 2027, with earnings reaching PkR3.3 billion, marking a 13% rise compared to the same period last year. This growth is attributed to higher retention prices and expanded gross margins.

According to AKD Securities Limited, the company's revenue rose by 15% year-on-year, totaling PkR11.8 billion, driven by a 17% increase in retention prices. This growth compensated for a 3% decline in total offtakes, which stood at 0.68 million tons due to the absence of exports. The gross margins improved to 41.8% from 33.9% in the previous year, supported by higher retention prices and an increase in the local sales mix.

The analysis further indicates a continued 'BUY' stance on Kohat Cement, with a target price of PkR194 per share by December 2026. This outlook is supported by several factors, including a recovering demand environment, stable coal prices, improved cost efficiencies, and reduced royalty rates.