Thatta Cement Announces EV Business Venture soon
KARACHI: The Board of Directors of Thatta Cement Company Limited (THCCL) has approved an investment in a wholly owned subsidiary to enter Pakistan’s rapidly expanding electric vehicle (EV) market.
In a notice announced at the PSX website, the company said, the subsidiary will initially focus on importing completely built-up (CBU) electric vehicles from China, targeting the mass-market segment with affordable, compact and small vehicles.
The company said its EV business strategy would focus on meeting the mobility needs and purchasing power of a broader consumer base rather than targeting the premium or conventional niche EV market. It also plans to explore opportunities for local vehicle assembly and other related activities in the future as the business develops.
The EV investment marks a proposed diversification of Thatta Cement’s business beyond its traditional cement operations, as the company seeks to tap into growing demand for affordable electric mobility in Pakistan.
The company will hold its Annual General Meeting (AGM) on Friday, November 27, 2026.
Thatta Cement Reports 21% Decline in Annual Profit for FY26
Thatta Cement has also reported a 21.4% decline in annual profit for the financial year ended June 30, 2026, as lower sales revenue, reduced gross profit and a sharp increase in finance costs weighed on its financial performance.
Meanwhile, the board has recommended a cash dividend of 25 per cent, equivalent to Rs0.50 per share, exclusively for minority shareholders. Majority shareholders, including Sky Pak Holding (Private) Limited, Al-Miftah Holding (Private) Limited, Golden Globe Holding (Private) Limited and Rising Star Holding, have waived their dividend entitlements for the financial year ended June 30, 2026. The company has also announced no bonus shares or right shares.
According to the company’s unconsolidated financial statements, profit after taxation fell to Rs2.009 billion in fiscal year 2025-26, compared with Rs2.557 billion in the previous financial year. Earnings per share (EPS) also declined to Rs4.74 from Rs6.04 in fiscal year 2024-25.
Net Sales Decline 10.2%
The company’s gross sales decreased to Rs10.118 billion during the said year, compared with Rs11.142 billion in the preceding year.
After accounting for sales tax and federal excise duty, net sales stood at Rs6.795 billion, down 10.2% from Rs7.566 billion in fiscal year 2024-25. Meanwhile, the cost of sales declined slightly to Rs5.318 billion from Rs5.416 billion.
Higher Finance Costs Weigh on Earnings
The company’s finance costs surged to Rs583.1 million in fiscal year 2025-26, compared with just Rs43.03 million in the preceding financial year. This substantial increase put additional pressure on profitability.
Selling and distribution expenses increased to Rs65.8 million from Rs45.88 million, while administrative expenses rose to Rs203.9 million from Rs151.89 million. However, other expenses declined to Rs129.31 million from Rs269.73 million.
Other Income Provides Support
Despite weaker gross profit, Thatta Cement received support from higher other income, which increased to Rs2.354 billion in FY26 from Rs1.999 billion. As a result, operating profit reached Rs3.431 billion, compared with Rs3.682 billion in the previous year.
Profit before taxation declined to Rs2.848 billion from Rs3.639 billion, while taxation amounted to Rs839.38 million against Rs1.083 billion.
Profitability Remains Under Pressure
The financial results indicate that lower sales and declining gross margins, alongside substantially higher financing costs, affected Thatta Cement’s earnings during fiscal year 2025-26.
Although increased other income provided some support, it was insufficient to offset the decline in operating performance and the higher cost of financing.
The company’s annual profit consequently fell by more than one-fifth, while earnings per share also recorded a notable decline.
About The Author
