Lucky Cement reported a profit after tax (PAT) of Rs. 48 billion for the first half of FY26, marking a 10 percent year-on-year (YoY) increase despite pressure on standalone margins and the absence of dividend income in the second quarter.
For 2QFY26, consolidated earnings stood at Rs. 22.62 billion, translating into earnings per share (EPS) of Rs. 15.44, up 6 percent YoY. The company did not announce any cash dividend for the period.
On a consolidated basis, net revenue surged 99 percent YoY to Rs. 123.5 billion, while remaining largely flat on a quarter-on-quarter (QoQ) basis. According to Topline Securities, the sharp YoY growth was driven mainly by stronger contributions from subsidiaries, particularly Lucky Motors, in line with broader auto industry sales trends.
On an unconsolidated basis, net sales declined 2 percent YoY due to lower retention prices. However, domestic cement sales volumes showed improvement, rising 8 percent QoQ and 9 percent YoY during 2QFY26. Standalone profits increased 18 percent YoY but fell 41 percent QoQ to Rs. 5.89 per share. The QoQ decline was largely due to a 58 percent drop in other income following the absence of dividend income. In 1QFY26, the company had received a Rs. 6 billion dividend from Lucky Electric (LEPCL).
Standalone gross margins came in at 36 percent in 2QFY26, compared with 35 percent in the same period last year and 39 percent in the previous quarter.
The share of profit from associates rose 4 percent YoY to Rs. 5.32 billion, while consolidated finance costs declined 29 percent YoY, reflecting lower debt levels. Other income on a consolidated basis increased 21 percent YoY in 2QFY26, supported by higher finance income and dividends from subsidiaries.
The effective tax rate for the standalone business declined to 29 percent in 2QFY26 from 36 percent a year earlier. On a consolidated basis, the effective tax rate stood at 17.9 percent, compared with 20.6 percent in the corresponding period last year.
Lucky Cement is currently trading at FY26E and FY27F price-to-earnings multiples of 7.1x and 6.1x, respectively.
