Pakistan’s Cement Sector Anticipated to Post Strong Growth in FY26
Pakistan’s cement industry is expected to show robust growth in the current fiscal year, according to a report by brokerage firm Topline Securities.
The firm maintained its overweight stance on the sector, citing recovery in both domestic demand and pricing.
Recent data indicates higher-than-expected growth. In July 2025, local cement sales rose by 18% year-on-year, while the first 17 days of August 2025 showed an increase of around 28% year-on-year. As a result, cement sales in the first two months of FY26 are expected to record overall growth of 20–25%.
The surge in demand is attributed to monetary easing, revival of the construction sector, and progress on infrastructure projects. Based on these trends, FY26 domestic sales could reach 42–45 million tons, reflecting an increase of 13–20% compared to FY25.
This improvement would raise the utilization of cement plants to 52–54%, up from 44% in FY25. For context, the sector’s peak was 48 million tons in FY21, before declining to 37 million tons in FY25.
Topline has also revised its cement earnings estimates upward by 5–7% for FY26, supported by stronger-than-expected demand and lower coal costs. While industry-wide forecasts remain around 3–6% growth, the firm continues to project 8% growth, with recent data suggesting it could even surpass 12%.
Cement prices are also expected to remain stable and gradually improve in FY26 on the back of rising demand and better capacity utilization.
