Ghandhara Automobiles Limited (GAL) has announced impressive financial results for the first quarter of fiscal year 2026, reporting a profit after tax (PAT) of Rs. 1.67 billion, representing a 2.8 times year-over-year increase from Rs. 601 million in the same period last year. The company’s earnings per share (EPS) stood at Rs. 29.33, compared to Rs. 10.55 last year.
Revenue Soars on Robust JAC Vehicle Sales
The automaker’s net revenue surged 253% year-over-year to Rs. 13.52 billion, primarily fueled by the phenomenal performance of the JAC T9 Hunter pickup, which saw sales of approximately 1,600 units during the quarter. Additionally, JAC X200 truck sales climbed 7% to 261 units, while JAC truck sales grew fivefold to 129 units, reflecting strong demand across its commercial vehicle lineup.
Despite higher sales volume, the company’s gross margins narrowed slightly to 17.7%, compared to 18.6% a year ago, mainly due to thinner margins on the JAC T9 Hunter model. On a sequential basis, margins remained stable, supported by a steady rupee-yuan exchange rate.
Financial Discipline and Investment Income Drive Profit
Ghandhara Automobiles demonstrated solid financial management during the quarter. Finance costs dropped 83% year-over-year to just Rs. 14 million, following a significant reduction in borrowings. Meanwhile, other income surged to Rs. 166 million, mainly from higher returns on short-term investments, enhancing the company’s overall profitability.
Another key contributor to GAL’s strong performance was profit from associated companies, particularly Ghandhara Industries Limited, which rose 3.2 times to Rs. 296 million. This growth underscores the strength of the broader Ghandhara Group’s automotive operations in Pakistan.
Taxation and Quarterly Comparison
The company reported an effective tax rate of 33.3%, up from 17.6% in the same quarter last year. On a quarter-on-quarter basis, profit dipped slightly by 8%, as the company adjusted to seasonal market trends and softer gross margins.
Outlook: Sustained Growth in Auto Sector
Ghandhara Automobiles’ Q1 FY2026 results reflect the growing momentum in Pakistan’s commercial and pickup vehicle segment. With steady foreign exchange parity, declining finance costs, and consistent product demand, GAL appears well-positioned for sustained growth in the coming quarters.
The continued success of the JAC T9 Hunter and expanding sales network will likely play a pivotal role in driving the company’s performance for the remainder of the fiscal year.
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