Lucky Cement plans 3.2 MTPA Karachi expansion and Congo addition

Lucky Cement Limited plans to add 3.2 million tons a year of cement capacity at its Karachi plant and 1.6 million tons a year at its integrated facility in the Democratic Republic of Congo, the company said in a corporate briefing on the first quarter of fiscal 2027, as reported by TechJuice and ProPakistani.

Commercial production from the Karachi expansion is targeted for December 2027, both outlets reported. The two accounts differ on the Congo schedule: ProPakistani said construction mobilisation began in the early second quarter of FY28 and that the work is expected to take 18 months from commencement, while TechJuice reported only that completion was expected within 18 months of construction starting.

According to ProPakistani, the company said the Karachi addition would help meet growing domestic and export demand, and the Congo project would strengthen its position in international markets.

Lucky Cement also plans 15 megawatts of solar capacity and a 15MW battery energy storage system at its Pezu plant, taking installed solar capacity to 104.3MW. A further 22.5MW of wind capacity will lift installed wind capacity to 51.3MW, with commissioning targeted in the second quarter of FY28, ProPakistani reported. Total renewable capacity is expected to reach 221.6MW after the additions.

In the first quarter of FY27, domestic sales rose 13 per cent to 1.8 million tons from 1.6 million tons a year earlier, and domestic market share edged up to 16.8 per cent from 16.1 per cent, according to ProPakistani. Export volumes fell 1.9 per cent to 0.81 million tons from 0.83 million tons, but export market share rose to 35.2 per cent from 31.9 per cent.

On a standalone basis, revenue rose 21 per cent to Rs41.1 billion from Rs33.9 billion, gross profit 14 per cent to Rs15.1 billion and operating profit 12 per cent to Rs11.8 billion. Profit after tax grew 17 per cent to Rs17.1 billion from Rs14.6 billion.

At the consolidated level, revenue rose 5 per cent to Rs131.9 billion and gross profit 3 per cent to Rs34 billion, but operating profit slipped 0.7 per cent to Rs26.6 billion and profit after tax fell 4 per cent to Rs22.6 billion from Rs23.6 billion.

The company described Pakistan's economic outlook as cautiously positive, supported by macroeconomic stability, ongoing reforms and stronger external indicators, while warning that fiscal pressures, structural challenges and geopolitical risks still threaten sustained growth.