Lucky Cement Expansion in Pakistan and Congo
Lucky Cement expansion plans will add 3.2 million tons per year of capacity at the company’s Karachi plant and 1.6 million tons per year at its integrated cement facility in the Democratic Republic of Congo. The company set out the plans in its corporate briefing for the first quarter of fiscal year 2027.
The Karachi project is a brownfield expansion, which means it builds on the existing plant site rather than starting on fresh land. It is targeted to begin commercial operations in December 2027. The company said the added capacity will help meet growing domestic and export demand.
For Congo, the company put construction mobilisation in early second-quarter FY28, with completion expected within 18 months of commencement. The project will strengthen its position in international markets, the company said.
Lucky Cement expansion: clean energy alongside cement
The expansion also covers renewable energy. Lucky Cement plans to add 15 megawatts of solar capacity at its Pezu plant, along with a 15-megawatt battery energy storage system. Total installed solar capacity will then reach 104.3 megawatts.
Wind power grows as well. The company is installing wind turbines with a combined capacity of 22.5 megawatts, taking total installed wind capacity to 51.3 megawatts. The new wind capacity is targeted for commissioning in the second quarter of FY28. Overall renewable energy capacity should reach 221.6 megawatts after the planned additions.
That energy shift matters for a cement maker. Cement plants use large amounts of power, so owned solar and wind capacity can cut electricity costs and reduce exposure to grid prices. Battery storage helps further, since it stores solar power for use when the sun is not shining.
Domestic sales rise in first quarter
Lucky Cement’s domestic sales volume increased by 13 percent to 1.8 million tons in the first quarter of FY27, compared with 1.6 million tons in the same period last year. Its domestic market share rose to 16.8 percent from 16.1 percent a year earlier.
Export sales volume declined by 1.9 percent to 0.81 million tons from 0.83 million tons. Despite that fall, the company’s export market share increased to 35.2 percent from 31.9 percent. In plain terms, Lucky Cement shipped slightly less abroad, but its rivals shipped less still, so its share of exports grew.
On a standalone basis, net revenue increased by 21 percent to Rs41.1 billion in the first quarter of FY27, compared with Rs33.9 billion in the same period last year. Gross profit rose by 14 percent to Rs15.1 billion, while operating profit increased by 12 percent to Rs11.8 billion. Profit after tax climbed by 17 percent to Rs17.1 billion from Rs14.6 billion.
At the consolidated level, revenue increased by 5 percent to Rs131.9 billion, while gross profit rose by 3 percent to Rs34 billion. Operating profit declined by 0.7 percent to Rs26.6 billion, and profit after tax fell by 4 percent to Rs22.6 billion from Rs23.6 billion. The gap between standalone and consolidated results reflects the wider group’s other businesses, which performed less strongly than the core cement operation.
What the outlook means for buyers
The company said Pakistan’s economic outlook remained cautiously positive, supported by macroeconomic stability, ongoing reforms and stronger external indicators. However, it warned that fiscal pressures, structural challenges and geopolitical risks continued to threaten sustained growth.
For readers, the Karachi expansion is the most direct part of the story. More domestic capacity, if demand holds, should ease supply pressure in the construction market. Cement prices affect housing and infrastructure costs, so added supply at an existing plant can matter more than a distant new project.
The results also arrived in a strong week for listed companies. The KSE-100 index gained sharply in October trading, while PSO’s quarterly profit more than doubled and mutual fund assets reached Rs4.72 trillion. Industrial groups such as BYD’s Pakistan venture with Hubco show the same pattern of local manufacturing growth that Lucky Cement’s expansion reflects.
Frequently asked questions
How much capacity will Lucky Cement add?
The Karachi brownfield expansion adds 3.2 million tons per year, and the Congo addition adds 1.6 million tons per year.
When will the Karachi expansion start operating?
Commercial operations are targeted for December 2027.
