AGTL posts massive turnaround with Rs1.5bn profit in 1HCY26

August 24, 2026 (MLN): Al-Ghazi Tractors Limited (PSX: AGTL) staged a dramatic financial turnaround for the half-year ended June 30, 2026 (1HCY26), reporting a net profit of Rs1.45bn.

This represents a complete recovery from the net loss of Rs75.15m recorded in the corresponding period last year.

Reflecting this sharp return to profitability, the company's basic and diluted earnings per share (EPS) turned positive at Rs24.99, compared to a loss per share (LPS) of Rs1.30 in 1HCY25.

The primary driver behind the turnaround was a massive top-line expansion combined with a sharp improvement in gross margins.

Net revenue from contracts with customers surged by 80% year-on-year to reach Rs13.94bn, up from Rs7.73bn in 1HCY25.

Although cost of sales increased by 60% to Rs10.21bn, revenue growth outpaced direct production costs, allowing AGTL to expand its gross profit nearly three-fold to Rs3.73bn compared to Rs1.35bn in the prior year.

On the operational front, overheads grew moderately to support higher production and sales activity.

 Distribution expenses rose 15% to Rs311.24m, while administrative expenses grew 4% to Rs1bn.

Additionally, expected credit loss charges dropped 50% to Rs81.18m (down from Rs160.82m).

Driven by strong core gross margin expansion, AGTL posted an operating profit of Rs2.34bn, reversing an operating loss of Rs36.85m last year.

Below the operating line, AGTL received significant relief from reduced borrowing costs alongside a multi-fold boost in secondary income.

Finance costs plummeted by 95% to Rs8.02m (down from Rs162.52m in 1HCY25), while "other income" grew to Rs210.84m. Supported by these factors, profit before income tax turned around to Rs2.36bn (reversing a pre-tax loss of Rs137.22m).

The company absorbed a corporate income tax charge of Rs907.62m for the period (compared to a tax credit of Rs62.07m in 1HCY25).

Supported by an 80% top-line surge, margin expansion, and a near-elimination of finance costs, Al-Ghazi Tractors Limited securely closed the six-month period firmly back in the black with a final net profit of Rs1.45bn.

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