Ghandhara Automobiles Posts Massive Profit of Rs. 1.67 Billion

Ghandhara Automobiles Limited (GAL) reported a profit after tax (PAT) of Rs. 1.67 billion for the first quarter of fiscal year 2026, translating into earnings per share (EPS) of Rs. 29.33, up 2.8 times year-over-year from Rs. 601 million (EPS: Rs. 10.55) recorded in the same period last year. However, profit declined 8% quarter-on-quarter, according to a report by Arif Habib Limited. The company’s net revenue surged 253% year-over-year to Rs. 13.52 billion, driven mainly by strong sales of the JAC T9 Hunter pickup, with around 1,600 units sold during the quarter. Sales of JAC X200 trucks rose 7% year-over-year to 261 units, while JAC truck sales grew fivefold to 129 units. Gross margins narrowed to 17.7% from 18.6% a year earlier, largely due to lower margins on JAC T9 Hunter sales. On a sequential basis, margins remained steady at 17.7%, supported by stable parity between the Pakistani rupee and the Chinese yuan. Finance costs dropped 83% year-over-year to Rs. 14 million following a reduction in borrowings, while other income climbed to Rs. 166 million, mainly due to higher returns on short-term investments. Profit from associated companies, particularly Ghandhara Industries Limited, rose sharply to Rs. 296 million, reflecting a 3.2 times increase compared to the same quarter last year. The company recorded an effective tax rate of 33.3%, up from 17.6% in the prior year.