Lahore: Pioneer Cement (PIOC) held its fiscal year 2026 analyst briefing today, revealing plans to expand its solar power capabilities, progress on a merger, and address ongoing industry challenges. The company anticipates a 7-7.5% growth in local cement industry sales for fiscal year 2027 and is advancing its solar power plant expansion, expected to be fully operational by December 2026.

According to JS Global, Pioneer Cement management discussed the company's strategic initiatives and challenges during the briefing. The expansion of the solar power plant to 28.3 megawatts is in its final stages, with commissioning underway. The merger with Maple Leaf Cement Factory Limited (MLCF) is projected to conclude by the end of this year. However, the company faces uncertainties with an ongoing royalty case pending in court, awaiting a hearing next week.

The briefing highlighted rising power costs, with average power costs increasing to Rs24-25 per unit. Pioneer Cement's power mix includes 67% grid electricity and waste heat recovery generating up to 9 megawatts. The company's non-operational 30MW coal-fired power plant reflects the impact of higher coal prices. Management is considering a battery energy storage system to improve solar power utilization and operational reliability.

Challenges persist in the availability of Darra coal, a significant component of PIOC's fuel mix, due to local mining restrictions. The company is exploring increasing the use of alternative fuels by March 2027. Despite these challenges, PIOC's financial performance improved, with a 35% year-over-year increase in profit after tax to Rs6.6 billion in fiscal year 2026.