D.G. Khan Cement Company Limited
By PSX Investors Zone · Updated October 16, 2026
D.G. Khan Cement Company Limited (DGKC) is a Pakistan Stock Exchange-listed cement manufacturer incorporated in 1978. It produces clinker, Ordinary Portland Cement and Sulphate Resistant Cement through its manufacturing facilities in Pakistan. In FY2026, DGKC reported standalone sales of Rs. 79.56 billion, profit after tax of Rs. 11.43 billion and EPS of Rs. 26.08. Its performance depends on cement demand, construction activity, energy costs, coal prices, freight expenses and financing costs. Investors should review its financial results, valuation, proposed dividend, expansion plans, current PSX risk notices and latest Shariah-screening status.
Company Overview
D.G. Khan Cement Company Limited (DGKC) is a listed Pakistani cement manufacturer incorporated in 1978. The company produces and sells clinker, Ordinary Portland Cement and Sulphate Resistant Cement.
Its manufacturing facilities serve Pakistan's construction and infrastructure markets. Cement demand is influenced by public-sector development spending, private construction, housing activity, infrastructure projects and export opportunities.
Sources: Official PSX company profile | DGKC official website
Business Model
DGKC earns revenue primarily through the production and sale of cement and clinker. Its profitability depends on several factors:
- Domestic cement demand: Construction activity and infrastructure investment influence sales volumes.
- Selling prices: Local competition and industry capacity affect pricing power.
- Energy costs: Coal, electricity, fuel and other energy inputs are important production expenses.
- Freight and distribution: Transportation costs affect the final cost of delivering cement.
- Export sales: International demand and export economics can support capacity utilization.
- Financing costs: Borrowings and interest expenses affect net profitability.
- Plant efficiency: Production efficiency and capacity utilization can influence margins.
Fundamental Analysis
Annual Financial Performance
The following figures are from the financial data displayed on the PSX company profile. Amounts are in Pakistani rupees and represent standalone figures.
| Financial metric | FY2026 | FY2025 |
|---|---|---|
| Sales | Rs. 79.563 billion | Rs. 71.893 billion |
| Profit after tax | Rs. 11.425 billion | Rs. 8.675 billion |
| Earnings per share (EPS) | Rs. 26.08 | Rs. 19.80 |
| Gross profit margin | 26.06% | 25.74% |
| Net profit margin | 14.36% | 12.07% |
| EPS growth | 31.72% | 1,496.77% |
Source: Official PSX DGKC financial profile
What the Figures Indicate
DGKC's standalone sales increased by approximately 10.7% in FY2026, while profit after tax rose by approximately 31.7%. Gross and net profit margins also improved.
The stronger growth in profit than sales indicates improved reported profitability, but investors should examine the drivers rather than assume that the same growth rate will continue. Finance costs declined substantially compared with FY2025, which contributed to the improvement in earnings.
Standalone Versus Consolidated Results
DGKC's FY2026 consolidated results differ from its standalone results because consolidated accounts include relevant subsidiaries and group operations.
The FY2026 results summary reported approximately:
| Financial metric | FY2026 consolidated |
|---|---|
| Revenue | Rs. 87.61 billion |
| Profit after tax | Rs. 12.17 billion |
| EPS | Rs. 26.98 |
Do not mix consolidated figures with standalone margins or ratios in the same comparison. Specify the reporting basis whenever publishing financial figures.
Source: FY2026 results summary
Share Price, P/E Ratio and 52-Week Range
The PSX profile displayed the following market data on October 16, 2026:
| Market metric | Value |
|---|---|
| Share price | Rs. 182.00 |
| P/E ratio (TTM) | 6.98 |
| 52-week high | Rs. 256.00 |
| 52-week low | Rs. 145.10 |
These are dated market figures, not guaranteed current values. Refresh them from PSX before publishing.
The P/E ratio compares the share price with trailing earnings per share. A lower P/E does not automatically mean a stock is undervalued. Cement demand, earnings sustainability, debt, capital expenditure and the wider economic environment should also be considered.
Source: Official PSX DGKC profile
ROA and ROE
Return on Assets (ROA): Verify from the latest annual report. A common calculation uses profit after tax divided by average total assets.
Return on Equity (ROE): Verify from the latest annual report. A common calculation uses profit attributable to ordinary shareholders divided by average shareholders' equity.
The ratios are not stated as confirmed values here because the calculation basis must be consistent with the financial statements. Do not estimate them from EPS or profit margins.
Source: DGKC financial reports and announcements
Dividend Information
For FY2026, the Board recommended a final cash dividend of Rs. 1 per share, equivalent to 10% of the Rs. 10 face value. This was a recommendation subject to the applicable approval and entitlement process; it should not be described as already paid unless confirmed by a subsequent official notice.
At the PSX share price of Rs. 182.00 on October 16, 2026, the proposed Rs. 1 dividend implies an indicative yield of approximately 0.55%. This is not a confirmed current dividend yield and does not include any assumption of future dividends.
Sources: Official PSX announcements | FY2026 results summary
Shariah Compliance Status
DGKC was included in the PSX KMI-30 recomposition based on Shariah-screening information as of December 31, 2025, with implementation in May 2026.
This is a dated screening result. Shariah status can change when financial statements are updated or screening criteria change. Verify the latest official PSX-KMI notice before displaying a permanent Shariah-compliant label on PSX Investors Zone.
Sources: PSX Shariah-compliant investment information | KMI-30 recomposition notice
Important PSX Risk Warning
The PSX company profile displays a Risk Warning Alert stating that DGKC is in continuous violation of specified clauses of the Exchange Rule Book and carries a risk of trading suspension or delisting, subject to Exchange requirements.
This warning does not, by itself, confirm that trading has been suspended or that the company has been delisted. Check the latest PSX profile and notices before publishing, and update this section if the warning changes.
Source: Official PSX DGKC profile
Strategic Developments
The FY2026 results summary reported that DGKC acquired a 31.07% associate stake in Rafhan Maize Products Company Limited. The reported transaction value was approximately Rs. 28.4 billion and was funded through a foreign-currency facility.
This investment may diversify DGKC's earnings beyond cement, but it also introduces additional investment, financing and foreign-currency considerations. Review the original company disclosures and annual report for the transaction details and funding terms.
Source: FY2026 results summary
Key Risks for Investors
- Construction slowdown: Lower construction and infrastructure activity can reduce cement demand.
- Energy costs: Coal, electricity and fuel prices can pressure production margins.
- Pricing competition: Industry competition may restrict cement price increases.
- Financing risk: Changes in borrowing costs and debt levels affect earnings.
- Foreign-currency exposure: Foreign-currency financing can create additional risk.
- Capital allocation: Large investments outside the core cement business require careful assessment.
- Regulatory risk: The current PSX Risk Warning Alert should be reviewed before publication.
- Shariah-screening changes: Confirm the latest official screening status rather than relying on a past list.
What Investors Should Monitor
- Monthly cement dispatches and industry demand trends.
- Quarterly sales, EPS and profit margins.
- Coal, electricity and freight costs.
- Borrowings, finance costs and operating cash flow.
- Progress and financial implications of major investments.
- Official dividend announcements and entitlement dates.
- Current PSX risk notices and Shariah-screening publications.
Frequently Asked Questions
What does DGKC do?
DGKC manufactures and sells clinker, Ordinary Portland Cement and Sulphate Resistant Cement.
Was DGKC profitable in FY2026?
Yes. Its standalone results reported profit after tax of approximately Rs. 11.43 billion and EPS of Rs. 26.08.
Did DGKC recommend a dividend for FY2026?
Yes. The Board recommended a final cash dividend of Rs. 1 per share, subject to the applicable approval and entitlement process.
Is DGKC Shariah-compliant?
DGKC was included in the PSX KMI-30 recomposition based on December 31, 2025 screening data. Verify the latest official screening notice before relying on this status.
Where can I find DGKC's financial reports?
Visit the official PSX company profile or the DGKC website.
Disclaimer
This profile is for educational and informational purposes only. It is not a recommendation to buy or sell DGKC shares and does not promise profits or investment outcomes. Verify the latest annual report, interim results, share price, dividend notices, PSX risk alerts and Shariah-screening status before making investment decisions.
This profile is for educational purposes and is not a recommendation to buy or sell any security.