Ghandhara Automobiles Limited (GAL) has announced an impressive 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. This marks a 2.8x year-over-year increase from Rs. 601 million (EPS: Rs. 10.55) reported during the same period last year.
However, the company’s profit slipped 8% quarter-on-quarter, according to a report by Arif Habib Limited.
Strong Sales Drive Revenue Growth
GAL’s net revenue surged 253% year-over-year to Rs. 13.52 billion, fueled by robust sales of the JAC T9 Hunter pickup, with approximately 1,600 units sold during the quarter.
Sales of JAC X200 trucks climbed 7% year-over-year to 261 units, while JAC heavy truck sales grew nearly fivefold to 129 units. Despite this strong performance, gross margins narrowed slightly to 17.7% from 18.6% last year, mainly due to thinner margins on JAC T9 Hunter sales.
Sequentially, margins held steady at 17.7%, supported by a stable exchange rate between the Pakistani rupee and Chinese yuan.
Financial Stability and Rising Investment Returns
Finance costs plunged 83% year-over-year to just Rs. 14 million, reflecting a decline in borrowings. Meanwhile, other income surged to Rs. 166 million, driven by higher returns from short-term investments.
Profit from associated companies, particularly Ghandhara Industries Limited, also rose sharply to Rs. 296 million, up 3.2 times compared to the same quarter last year.
The company recorded an effective tax rate of 33.3%, higher than 17.6% in the prior year, indicating a return to normalized tax conditions following earlier concessions.
Ghandhara Automobiles’ Q1 performance reflects strong market demand, effective cost control, and a solid outlook for continued growth in Pakistan’s automotive sector.
