Ghandhara Automobiles Posts Massive Profit of Rs. 1.67 Billion

Ghandhara Automobiles Reports Rs. 1.67 Billion Profit in Q1 FY2026 Driven by JAC T9 Hunter Sales

KARACHI: Ghandhara Automobiles Limited (GAL) has announced a strong financial performance for the first quarter of fiscal year 2026, posting a profit after tax (PAT) of Rs. 1.67 billion, translating into earnings per share (EPS) of Rs. 29.33. This marks a 2.8 times increase year-over-year from Rs. 601 million (EPS: Rs. 10.55) reported in the same quarter last year.

However, the company’s profit showed a slight 8% decline quarter-on-quarter, according to a report by Arif Habib Limited.

Revenue Growth Fueled by JAC T9 Hunter

GAL’s net revenue surged 253% year-over-year to Rs. 13.52 billion, primarily driven by the successful launch and strong sales of the JAC T9 Hunter pickup, with around 1,600 units sold during the quarter.

Sales of JAC X200 trucks also increased 7% year-over-year to 261 units, while JAC truck sales jumped fivefold to 129 units, highlighting the company’s growing market presence in Pakistan’s light commercial vehicle segment.

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Margins and Costs

Despite the impressive revenue growth, gross margins narrowed slightly to 17.7%, down from 18.6% a year earlier. The decline was attributed to lower profit margins on JAC T9 Hunter sales. Sequentially, margins remained stable at 17.7%, supported by a steady exchange rate between the Pakistani rupee and the Chinese yuan.

Finance costs dropped by 83% year-over-year to Rs. 14 million, driven by a reduction in borrowings. Meanwhile, other income climbed to Rs. 166 million, mainly due to higher returns on short-term investments.

Contribution from Associated Companies

Profit from associated companies, particularly Ghandhara Industries Limited, rose sharply to Rs. 296 million, marking a 3.2 times increase compared to the same quarter last year.

However, the company’s effective tax rate increased to 33.3%, up from 17.6% in the corresponding period of the previous year.

Outlook

Ghandhara Automobiles continues to strengthen its portfolio through successful partnerships with Chinese automakers and the rising popularity of its JAC-branded vehicles. The steady sales performance, efficient cost control, and growing non-operating income indicate a promising trajectory for the remainder of fiscal year 2026.