Ghandhara Automobiles Reports Record Profit of Rs. 1.67 Billion

Ghandhara Automobiles Limited (GAL) has reported a strong financial performance for the first quarter of fiscal year 2026, posting a profit after tax (PAT) of Rs. 1.67 billion. This translates into earnings per share (EPS) of Rs. 29.33, marking a 2.8-fold increase compared to Rs. 601 million (EPS: Rs. 10.55) earned during the same quarter of the previous year. However, profits declined 8% on a quarter-on-quarter basis, according to data shared by Arif Habib Limited.

The company’s net revenue saw a substantial year-over-year increase of 253%, reaching Rs. 13.52 billion, driven primarily by robust sales of the JAC T9 Hunter pickup. Approximately 1,600 units of the T9 Hunter were sold during the quarter, contributing significantly to GAL’s revenue growth.

Sales of the JAC X200 truck also improved, rising 7% year-over-year to 261 units, while JAC heavy truck sales jumped nearly fivefold to 129 units. Despite the surge in sales, the company’s gross margins declined slightly to 17.7% from 18.6% a year earlier, primarily due to lower profit margins on T9 Hunter pickups. Sequentially, margins remained steady, supported by stable currency parity between the Pakistani rupee and the Chinese yuan.

Finance costs fell sharply by 83% year-over-year to Rs. 14 million, reflecting a decrease in borrowings. Meanwhile, other income rose to Rs. 166 million, largely driven by higher returns on short-term investments.

Profit from associated companies, particularly Ghandhara Industries Limited, showed a strong performance, increasing 3.2 times to Rs. 296 million compared to the same period last year.

The company reported an effective tax rate of 33.3%, higher than the 17.6% recorded in the previous year. Despite the higher tax burden and a slight dip in quarterly profit, Ghandhara Automobiles’ results highlight solid operational growth, strong product demand, and improving financial efficiency.