Kohat Cement did not lose money in the year ended 30 June 2026. It still earned a large profit. The sharper story is that earnings fell, margins tightened, and shareholders were again offered no cash dividend, bonus or rights issue.
Net sales rose about 2.7 percent to Rs 38.53 billion from Rs 37.54 billion. That modest lift in the top line did not reach the bottom line. Cost of sales jumped nearly 10 percent to Rs 24.88 billion, and gross profit dropped 8.4 percent to Rs 13.65 billion from Rs 14.89 billion.
Gross margin compressed from about 39.7 percent to 35.4 percent. In a price-sensitive cement market, that squeeze is the result that matters more than the small sales gain.
Lower Profit, Still No Loss
Unconsolidated profit after tax came in at Rs 10.70 billion, down 7.6 percent from Rs 11.58 billion a year earlier. Earnings per share printed at Rs 11.64 against Rs 11.97.
Operating profit declined 10.5 percent to Rs 11.48 billion. Administrative expenses rose to Rs 1.07 billion from Rs 865 million. Other income, a big support in prior years, eased to Rs 4.65 billion from Rs 5.28 billion.
Finance cost did fall sharply, to Rs 153 million from Rs 350 million. That helped, but not enough to offset weaker gross profit and softer investment income. Consolidated profit after tax was almost the same, at Rs 10.70 billion.
The company remains highly profitable. Calling this a loss would be wrong. Calling it a clean year for owners would also be wrong.
Cash Thinned While Investments Grew
Cash generated from operations dropped to Rs 5.23 billion from Rs 9.38 billion. After tax, welfare payments and finance charges, the operating cash picture is much tighter than last year.
The company spent Rs 4.62 billion on property, plant and equipment, nearly double the prior year’s Rs 2.40 billion. Short-term investments rose to Rs 35.51 billion. Long-term financing increased to Rs 3.22 billion, and short-term borrowings jumped to Rs 2.19 billion from a negligible balance.
Unconsolidated cash and cash equivalents ended the year negative at about Rs 260 million, versus a Rs 1.45 billion surplus a year earlier. Equity still climbed to Rs 58.65 billion on retained earnings.
Related-Party Money, No Shareholder Payout
The board recommended nil cash dividend, nil bonus shares and nil right shares. It also flagged two price-sensitive decisions.
Directors approved renewal of a Rs 600 million loan or advance to associated company Ultra Kraft. They also approved renewal and enhancement of equity investment of up to Rs 1.50 billion in wholly owned subsidiary Ultra Properties, which is developing a real estate project in Lahore.
Shareholders who wanted a cheque will instead be asked to back more capital for an associate and a property vehicle. The annual general meeting is set for 22 October 2026 at the Kohat factory. Share transfer books will close from 15 to 22 October 2026.
The annual report is due through PUCARS at least 21 days before the meeting. Until then, the message from these accounts is plain: sales ticked up, profit and margins did not, and cash is being steered into expansion and related parties rather than a payout.