PACRA Maintains Entity Ratings of Bestway Cement Limited

Bestway Cement Limited’s (“the Company”) ratings reflect its strong operating and financial profile, supported by resilient volumes, a competitive cost structure, and a growing renewable energy portfolio.
During FY26, industry dispatches rose ~7.2% YoY to 50.6mln tons, driven by a ~9.5% increase in domestic dispatches amid lower interest rates, easing inflation, and improving construction activity. At the Company level, net turnover remained broadly stable at PKR 108.3bln (FY25: PKR 107.8bln), supported by higher domestic volumes and improved realizations. However, gross profit margin narrowed to 30.0% (FY25: 34.6%) amid elevated fuel and operating costs, particularly higher imported coal prices, which reached ~USD 113/ton in 4QFY26. The impact of higher energy costs was partly mitigated by the Company’s renewable energy portfolio, comprising 114.3MW of solar capacity and 67.5MW of WHRPPs, which reduces reliance on grid electricity and supports lower power costs for its operations. Consequently, operating profit declined 16.72% YoY to PKR 26.5bln. Lower finance costs, however, more than offset the decline in operating profitability, supporting a 7.9% YoY increase in PAT to PKR 25.8bln (FY25: PKR 23.9bln) and an improvement in net profit margin to 23.8% from 22.1% in SPLY. The ratings are further supported by the Group’s strategic investment in UBL, with its ~9.6% shareholding providing recurring dividend income.
The ratings derive strength from the Company’s established market position, strong sponsor profile, and prudent financial management. Continued focus on operational efficiency and disciplined capital allocation remains important in preserving financial flexibility. Going forward, the Company’s ability to navigate industry overcapacity, input cost volatility, pricing pressures, and export constraints, will remain key rating considerations.

About the Entity
Bestway Cement Limited is the largest cement manufacturer in Pakistan, with ~15.323mln tons p.a. installed capacity across five integrated facilities according to APCMA (Installed Cement Production Capacity - June 30, 2025). The Company draws on a geographically diversified footprint, robust distribution network, and well-established market position. Bestway International Holdings Limited holds 56.43% of the Company’s shares, while the Bestway Group and associated parties collectively hold 72.68%, underscoring strong sponsor backing. The eight-member Board is chaired by Sir Mohammed Anwar Pervez, while Lord Zameer Choudrey serves as CEO; the Board includes two executive, three non-executive, and three independent directors.