Dewan Cement Limited
By PSX Investors Zone · Updated October 22, 2026
Dewan Cement Limited (PSX: DCL) is a Pakistani cement manufacturer incorporated in March 1980, with production facilities in Dhabeji, Karachi, and Hattar, Haripur. In FY2026, the company reported net turnover of approximately Rs.25.00 billion and a net loss of Rs.169.75 million, an improvement from the Rs.967.79 million loss reported in FY2025. Despite the smaller loss, significant financial and regulatory risks remain. The company's disclosures describe liquidity pressures and material uncertainty about its ability to continue as a going concern, while PSX displays a Risk Warning Alert concerning possible suspension or delisting. DCL was classified as Shariah-compliant in the PSX-KMI All Share Islamic Index review published in May 2026, based on accounts to December 2025.
Company Overview
Dewan Cement Limited (PSX: DCL) is a Pakistan Stock Exchange-listed company incorporated in Pakistan in March 1980. Its principal activity is manufacturing and selling cement. The company operates production facilities at Dhabeji, Karachi, and Kamilpur near Hattar in District Haripur, Khyber Pakhtunkhwa.
Cement demand is closely linked to construction, infrastructure development, public-sector projects and private real-estate activity. Profitability can also be affected by energy costs, fuel prices, freight, raw-material expenses, interest costs and the level of capacity utilization.
Official website: https://www.dewancement.com/
PSX company profile: https://dps.psx.com.pk/company/DCL
Business Activities
Dewan Cement's core business is cement manufacturing and sales. Its two production locations give it operations in Sindh and Khyber Pakhtunkhwa.
Important business factors to monitor include:
- Cement dispatch volumes and selling prices.
- Coal, electricity, fuel and transportation costs.
- Plant utilization and production efficiency.
- Competition and regional demand.
- Borrowing costs, debt repayments and working-capital availability.
These factors can materially affect operating margins and cash generation in the cement industry.
Financial Performance
According to the financial summary published on the PSX company profile, Dewan Cement reported the following annual results:
| Financial indicator | FY2026 | FY2025 |
|---|---|---|
| Sales | Rs. 24.999 billion | Rs. 21.413 billion |
| Profit/(loss) after tax | Loss of Rs. 169.752 million | Loss of Rs. 967.787 million |
| Earnings per share (EPS) | Loss of Rs. 0.32 | Loss of Rs. 2.00 |
| Gross profit margin | 6.35% | 7.22% |
| Net profit margin | -0.68% | -4.52% |
Source: PSX financial summary. Figures are based on the financial data displayed by PSX; consult the company's audited annual report for the full reported statements and notes.
Net sales increased by approximately 16.8% in FY2026, and the annual loss narrowed considerably compared with FY2025. Nevertheless, DCL remained loss-making, and its gross profit margin declined from the prior year. Higher sales alone therefore do not establish a sustainable recovery.
Investors should examine operating costs, finance charges, cash flows, liabilities, the auditor's report and the explanations given in the annual report before assessing whether the improvement can continue.
Financial source: https://dps.psx.com.pk/company/DCL
FY2026 annual report announcement: Available through the PSX company profile under announcements.
Shariah Compliance Status
Dewan Cement Limited was classified as Shariah-compliant in the PSX-KMI All Share Islamic Index screening published on May 15, 2026, using financial accounts up to December 31, 2025.
The screening notice reported the following ratios:
| Screening measure | Reported ratio |
|---|---|
| Debt to total assets | 12.85% |
| Non-compliant investments to total assets | 0.00% |
| Non-compliant income to total revenue | 0.00% |
| Illiquid assets to total assets | 97.00% |
These ratios reflect the stated screening period and the methodology used in that review. Shariah screening status can change following updated financial information, revised criteria or a new index review. Check the latest official PSX screening before relying on this classification.
Official screening notice: https://dps.psx.com.pk/download/attachment/277332-1.pdf
Important Risk Warning Alert (RWA)
PSX displays a Risk Warning Alert for Dewan Cement Limited. The alert states that the company is in continuous violation of Clauses 5.11.1 or 5.11.2 and carries a risk of suspension of trading or delisting from the Exchange, subject to the Exchange's terms and conditions.
This is a material regulatory risk. Investors should review the latest PSX disclosures to determine whether the company has resolved the cited violations or whether the alert remains in effect.
Official PSX profile: https://dps.psx.com.pk/company/DCL
Going-Concern and Liquidity Concerns
DCL's interim financial statements for the period ended March 31, 2026, reported a loss after taxation of approximately Rs.508.00 million for the nine-month period. The report also stated that current liabilities exceeded current assets by approximately Rs.1.844 billion.
The same report described expired and unrenewed short-term borrowing facilities, difficulties in meeting scheduled long-term borrowing payments, and legal recovery actions by certain lenders. It identified material uncertainty that could cast significant doubt on the company's ability to continue as a going concern.
The FY2026 annual reporting also refers to going-concern uncertainty and auditor concerns. These disclosures should be read directly in the relevant reports; a reduction in the annual loss does not by itself resolve liquidity or solvency concerns.
Source: https://dps.psx.com.pk/download/document/275627.pdf
Latest announcements and reports: https://dps.psx.com.pk/company/DCL
Dividends and Corporate Actions
The FY2026 results announcement reported that the board recommended no dividend for the year ended June 30, 2026. Investors should check subsequent official announcements for any changes, approvals or additional corporate actions.
The company also announced a further issue of shares other than by way of a rights offer in connection with the conversion of a sponsor loan into equity. Review the relevant PSX announcements to understand the final terms, approvals and implications for shareholders.
Official source: https://dps.psx.com.pk/company/DCL
What Investors Should Monitor
Before evaluating DCL, investors may wish to review:
- Liquidity and solvency: Current liabilities, borrowing facilities, debt repayments and the company's ability to meet financial obligations.
- Auditor's report: The latest auditor opinion and the details behind going-concern uncertainty.
- Operating performance: Cement sales, dispatch volumes, gross margins and cost control.
- Cash flow: Whether operations generate sufficient cash to fund expenses and obligations.
- Regulatory status: Updates concerning the PSX Risk Warning Alert and the relevant listing-regulation clauses.
- Corporate actions: Final details of any sponsor-loan conversion or other share issuance.
- Shariah screening: The latest official PSX-KMI All Share Islamic Index review and screening methodology.
Frequently Asked Questions
What is Dewan Cement Limited's PSX symbol?
Its trading symbol is DCL.
Is Dewan Cement Limited Shariah-compliant?
It was classified as compliant in the PSX-KMI All Share Islamic Index screening published on May 15, 2026, based on accounts to December 31, 2025. Investors should verify its status in the latest official screening.
Did Dewan Cement make a profit in FY2026?
No. The PSX financial summary reports a loss after tax of approximately Rs.169.75 million for FY2026, although this was substantially lower than the loss reported in FY2025.
What are the main risks associated with DCL?
Key disclosed concerns include continuing losses, liquidity pressures, going-concern uncertainty, lender recovery actions and the PSX Risk Warning Alert concerning possible suspension or delisting.
Does Shariah-compliant status mean DCL is a low-risk investment?
No. Shariah screening addresses specified business and financial criteria. It does not guarantee financial stability, share-price performance or freedom from regulatory and liquidity risks.
Investor Note
This profile is for educational and research purposes. Financial results, regulatory status and Shariah screening can change. Consult the latest official PSX announcements, audited financial statements and screening notices before making an investment decision.
This profile is for educational purposes and is not a recommendation to buy or sell any security.