Karachi: Maple Leaf Cement Ltd (MLCF) and Pioneer Cement Ltd (PIOC) are poised for significant year-over-year earnings growth in the first quarter of the fiscal year 2027, driven by increased dispatches and favorable financial conditions. The report anticipates a decline in sequential earnings due to specific one-off expenses and tax rate normalization.

According to JS Global, MLCF is expected to report a consolidated earnings per share (EPS) of Rs3.20 for the first quarter, marking a 23% increase compared to the same period last year. This growth is attributed to a 5% rise in core dispatches and enhanced gross margins, aided by higher retentions and the utilization of low-cost coal inventories. However, the company's earnings are projected to decrease by 21% sequentially, primarily due to a one-time reversal of a Rs1.5 billion royalty expense recorded in the previous quarter.

PIOC is also projected to experience a 38% year-over-year rise in earnings, reaching Rs7.72 per share. This increase is supported by a 7% rise in dispatches and a reduction in finance costs, as the company successfully retired all its debt by June 2026. Nonetheless, sequential profitability is expected to decline due to a normalized tax rate, which contrasts with the favorable 20% rate in the fourth quarter of fiscal year 2026, a period that benefited from a deferred super tax credit.

MLCF has been identified as the top pick in the sector, with a target price set at Rs135 by June 2027, reinforcing its position as a strong performer in the industry.