Attock Cement Pakistan Limited posted a sharp increase in earnings for the year ended June 30, 2026, with profit nearly doubling year-on-year, while its board also authorised management to explore and evaluate a potential merger with Fauji Cement Company Limited.

According to the company's financial results, profit for FY26 rose to Rs3.42 billion, compared with Rs1.73 billion in the previous year, reflecting growth of approximately 97.35%. Basic and diluted earnings per share (EPS) consequently increased to Rs24.86 from Rs12.60 in FY25.

The cement manufacturer's revenue increased by around 33% to Rs44.32 billion, up from Rs33.31 billion a year earlier. Cost of sales rose to Rs32.23 billion from Rs25.34 billion, but the stronger topline helped lift gross profit to Rs12.09 billion, compared with Rs7.97 billion in FY25.

Operating performance also strengthened during the year. Profit from operations climbed to Rs6.27 billion from Rs4.67 billion, despite higher distribution and administrative expenses. Distribution costs increased to Rs5.08 billion from Rs3.56 billion, while administrative expenses rose to Rs1.12 billion from Rs988.32 million. Other income, meanwhile, declined to Rs746.77 million from Rs1.43 billion.

A significant reduction in financing costs provided further support to the bottom line. Finance cost declined to Rs1.02 billion from Rs1.84 billion in the previous year, helping profit before income tax rise to Rs5.28 billion, compared with Rs2.86 billion in FY25. The company booked an income tax expense of Rs1.86 billion, up from Rs1.13 billion a year earlier.

Attock Cement's balance sheet showed total assets of Rs50.33 billion as of June 30, 2026, broadly stable compared with Rs50.42 billion a year earlier. Total equity increased to Rs24.70 billion from Rs22.50 billion, while total liabilities declined to Rs25.62 billion from Rs27.92 billion.

The company's cash generation also improved considerably. Net cash generated from operating activities stood at Rs6.09 billion in FY26, compared with a net operating cash outflow of Rs394.09 million in the previous year. Cash generated from operations before finance costs, taxes and other adjustments reached Rs7.84 billion.

The board did not recommend a final cash dividend for FY26. However, Attock Cement had already paid an interim cash dividend of Rs0.50 per share, equivalent to 5%, during the year. No bonus shares, right shares or other entitlements were announced.

The company's Annual General Meeting is scheduled for September 22, 2026, at 11:00am in Karachi, while its share transfer books will remain closed from September 15 to September 22, both days inclusive.

Alongside its financial results, Attock Cement disclosed a significant corporate development, saying its board has authorised management to explore and evaluate the feasibility of a potential merger of the company with Fauji Cement Company Limited.

Management has been tasked with assessing the potential transaction and presenting its recommendations to the board for consideration. The disclosure represents an evaluation of a possible merger rather than confirmation that a merger transaction has been approved or finalised.

The board has also approved a proposal to shift Attock Cement's registered office from Karachi, Sindh, to Rawalpindi, Punjab. The relocation remains subject to shareholders' approval through a special resolution at the forthcoming AGM and completion of applicable statutory and regulatory requirements.