Kohat Cement pushes ahead with energy expansion, to invest Rs8bn in 28.5MW power plant

Kohat Cement Company Limited (KOHC) is moving ahead with significant energy infrastructure initiatives aimed at enhancing efficiency and reducing operational costs, according to details shared during the company’s latest analyst briefing, attended by Arif Habib Limited (AHL).

According to AHL’s report, KOHC management revealed that construction of its 28.5MW coal-fired captive power plant is underway, with completion targeted between the fourth quarter of FY26 and the first quarter of FY27.

The project, involving a capital expenditure of Rs8 billion will help reduce the cement maker’s dependence on the national grid.

“Additionally, the company is in the process of enhancing its solar generation capacity from 15.3MW to 20MW, which will further strengthen its renewable footprint and reduce dependence on the grid,” read the report.

In Pakistan, there has been a growing shift towards alternative energy sources, especially solar, which has become increasingly popular among residential and commercial sectors.

According to recent figures from AHL, net metering units—excluding K-Electric consumers—showed significant growth, rising from 70.35 GWh in September 2024 to 142.67 GWh in September 2025, an increase of over 100%.

Meanwhile, Kohat Cement’s planned Greenfield cement expansion project in Hushar remains in the planning phase, with machinery procurement contingent upon continued strength in domestic demand.

“The company maintains sufficient liquidity, with financing for the upcoming power project structured on a 50:50 debt-to-equity basis,” read the report.

On the financial front, in 1QFY26, Kohat Cement posted a profit of Rs2.9 billion against Rs3.4 billion in 1QFY25.

Earlier, the cement maker announced the formation of a wholly-owned subsidiary, Ultra Properties (Private) Limited, marking its entry into the real estate sector.