Thatta Cement Company Limited (PSX: THCCL) has announced an aggressive strategic diversification into Pakistan’s rapidly expanding electric vehicle (EV) sector. The company’s board of directors, in a meeting held on November 4, 2026, formally approved capital investment into a newly formed, wholly owned subsidiary. This venture is tasked initially with importing completely built-up (CBU) electric vehicles directly from China.
Moving away from the saturated premium automotive tier, Thatta Cement intends to target the mass-market demographic. The strategic focus will centre on compact, affordable EV models designed to match the purchasing power and daily mobility requirements of the average Pakistani consumer. According to the regulatory disclosure submitted to the Pakistan Stock Exchange (PSX), the board highlighted that increasing consumer interest, a wave of new international market entrants, and favourable government tax concessions provided the ideal catalyst for this transition. The company has also left the door open for future backward integration, indicating that while operations will commence with CBU imports, the long-term vision may encompass local vehicle assembly and associated supply chain operations.
This diversification into the electric mobility ecosystem—a stark departure from heavy building materials—underscores a broader trend of Pakistani industrial conglomerates seeking new, high-growth revenue streams outside of their traditional sectors. While Thatta Cement has previously invested in captive green energy, such as a 4.8 MW wind power project at its Sindh plant, stepping into consumer automotive sales represents a significant operational pivot. Crucial details, including the total approved capital expenditure, the specific Chinese manufacturing partners, and the anticipated commercial launch date, currently remain undisclosed.
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The EV announcement was released concurrently with the firm’s financial results for the fiscal year ending June 30, 2026. Despite a robust top-line performance, bottom-line profitability experienced a contraction. Consolidated net sales surged by a robust 26.3 per cent, reaching Rs11.93 billion compared to Rs9.44 billion in the preceding financial year. This revenue expansion effectively translated into higher core margins, with gross profit climbing to Rs3.85 billion from Rs2.95 billion, and operating profit firming up at Rs3.92 billion against the previous year’s Rs3.64 billion.
However, the aggressive top-line growth was severely undermined by a highly restrictive macroeconomic environment. Consolidated profit after tax slipped by 2.9 per cent to Rs2.28 billion, down from Rs2.34 billion in FY2025. This earnings compression was driven primarily by a severe spike in finance costs, which escalated sharply to Rs681.27 million from just Rs202.72 million the previous year, coupled with a drastic reduction in other income, which fell to Rs488 million from Rs1.17 billion. Consequently, profit attributable to the holding company’s shareholders decreased to Rs2.03 billion, with consolidated earnings per share (EPS) declining from Rs5.66 to Rs4.80. On an unconsolidated basis, the standalone profit after tax similarly contracted to Rs2.01 billion from Rs2.56 billion.
To preserve liquidity for its upcoming capital-intensive ventures, the board of directors recommended a cash dividend of Rs0.50 per share (equivalent to 25 per cent), which will be distributed exclusively to minority shareholders. In a show of confidence and strategic capital retention, majority stakeholders—including Sky Pak Holding (Private) Limited, Al-Miftah Holding (Private) Limited, Golden Globe Holding (Private) Limited, and Rising Star Holding—voluntarily waived their dividend entitlements for the 2026 financial year. The company’s annual general meeting is scheduled for November 27, 2026, in Karachi, as it prepares to navigate its dual role as a cement manufacturer and an emerging EV importer.