Lucky Cement posted a profit after tax (PAT) of Rs. 48 billion for the first half of FY26, up 10 percent year-on-year (YoY) despite pressure on standalone margins and the absence of dividend income in the second quarter.
The 2QFY26 consolidated earnings came in at Rs. 22.62 billion (earnings per share of Rs. 15.44), up 6 percent YoY. The company did not announce any cash dividend.
On a consolidated basis, net revenue surged 99 percent YoY but remained largely flat on a quarter-on-quarter (QoQ) basis at Rs.123.5 billion. According to Topline Securities, the YoY growth was primarily driven by stronger contributions from subsidiaries, particularly Lucky Motors, in line with prevailing auto industry sales trends.
On an unconsolidated basis, net sales declined 2 percent YoY, mainly due to lower retention prices. However, domestic cement sales volumes increased 8 percent QoQ and 9 percent YoY during 2QFY26. Standalone profits rose 18 percent YoY but declined 41 percent QoQ to Rs. 5.89 per share. The QoQ decline was largely attributable to a 58 percent drop in other income due to the absence of dividend income. Notably, LUCK had received a dividend of Rs. 6 billion from Lucky Electric (LEPCL) in 1QFY26.
Standalone gross margins stood at 36 percent in 2QFY26, compared with 35 percent in 2QFY25 and 39 percent in 1QFY26.
The share of profit from associates increased 4 percent YoY to Rs. 5.32 billion.
On a consolidated basis, finance costs declined 29 percent YoY, reflecting reduced debt levels.
Other income rose 21 percent YoY in 2QFY26, mainly due to higher finance income and dividends from subsidiaries.
The effective tax rate in the standalone business declined to 29 percent in 2QFY26 from 36 percent in 2QFY25. On a consolidated basis, the effective tax rate stood at 17.9 percent, compared with 20.6 percent in the same period last year.
LUCK is currently trading at FY26E/FY27F price-to-earnings multiples of 7.1x and 6.1x, respectively.
