Lucky Cement Limited (PSX: LUCK) posted a 16 percent year-on-year increase in consolidated profit after tax to Rs. 89 billion in fiscal year 2026, marking the company’s strongest annual earnings on record.

According to Arif Habib Limited, the improvement was driven by stronger performance from Lucky Cement’s domestic operations, along with continued contributions from its international businesses. The company’s consolidated earnings per share (EPS) also reached a record Rs. 60.78.

Lucky Cement’s board approved a cash dividend of Rs. 5 per share for FY26, up from Rs. 4 per share distributed for the previous year. On a standalone basis, EPS climbed 41 percent year-on-year to Rs. 31.83.

Consolidated revenue rose 14 percent to Rs. 516.3 billion, supported primarily by higher sales across the company’s domestic cement, automobile and mobile phone businesses.

The company also recorded revenue growth in its Animal Health and Pharmaceuticals operations. However, sales from Polyester, Soda Ash, Chemicals and Agri Sciences declined during the year.

Consolidated gross profit increased 3 percent to Rs. 131.3 billion, although the gross margin narrowed to 25 percent from 28 percent in FY25.

The company attributed the improvement in profitability to higher cement dispatches and lower international coal prices.

Other income increased 30 percent to Rs. 21 billion, mainly due to higher cash and cash equivalents. On a standalone basis, other income rose 37 percent, partly supported by Rs. 12 billion received from Lucky Electric Power Company during FY26.

Lucky Cement also benefited from lower financing expenses. Consolidated finance costs declined 26 percent year-on-year to Rs. 18.9 billion, largely reflecting a 19 percent reduction in the prevailing interest rate environment.

The company’s effective tax rate also improved, falling to 17 percent in FY26 from 20 percent a year earlier.

Lucky Cement ended FY26 with consolidated cash and cash equivalents of Rs. 181.9 billion, compared with Rs. 141.7 billion at the end of FY25.

On a standalone basis, cash and cash equivalents increased substantially to Rs. 96.3 billion from Rs. 64 billion, strengthening the company’s liquidity position.