Maple Leaf Cement Profit Falls 17% in 2QFY26

By Aftab Ahmed • February 25, 2026

Maple Leaf Cement Factory posted Rs3.1bn profit in 2QFY26, down 17% year-on-year, as lower retention prices and higher fuel costs squeezed margins despite stable sales.

Maple Leaf Cement Factory reported consolidated net earnings of Rs3.1bn for 2QFY26, translating into earnings per share of Rs3, compared with Rs3.7bn and EPS of Rs3.6 in the same period last year.

The 17% year-on-year decline in profit came largely in line with market expectations, reflecting margin pressure during the quarter.

The company’s topline stood at Rs18.9bn, broadly flat on an annual basis. A 6% YoY increase in volumetric sales was offset by a 5% decline in retention prices, limiting revenue growth.

Gross margin narrowed to 35% in 2QFY26 from 40% a year earlier. The contraction was mainly attributed to lower retention prices and higher fuel costs, which weighed on production margins.

Finance cost declined sharply to Rs207mn, down 61% YoY, supported by deleveraging and lower interest rates during the period. The reduction in borrowing costs partially cushioned the impact of weaker gross margins.

On a sequential basis, earnings rose 15% quarter-on-quarter. The improvement was driven by a 13% increase in volumetric sales and lower imported coal prices, which helped ease cost pressures.

The effective tax rate increased to 36% in 2QFY26 compared with 27% in the same quarter last year, further limiting bottom-line growth.

As per the latest consolidated accounts, Maple Leaf Cement Factory reported a net cash position of Rs4bn, compared with net debt of Rs1.5bn a year earlier. The balance sheet improvement reflects strong cash generation and debt reduction efforts.

For the first half of FY26, the company posted earnings per share of Rs5.6, up 15% from Rs4.8 in the same period last year. The increase in cumulative earnings was mainly supported by higher other income of Rs790mn, up 2.7 times YoY, and a 54% decline in finance cost to Rs542mn.

The company’s performance comes amid mixed trends in Pakistan’s cement sector, where dispatch volumes have shown resilience but pricing pressures persist. Lower interest rates have provided relief to leveraged players, while energy costs remain a key variable for margins.