Al-Ghazi Tractors reports sharp YoY earnings decline

March 18, 2026 (MLN): Al-Ghazi Tractors Limited (PSX: AGTL) posted a significant decrease in net profit, which fell by 63% to Rs1.30bn for the year ended December 31, 2025, compared to Rs3.54bn in the previous year.

Earnings per share (EPS) also mirrored this decline, dropping to Rs22.44 from Rs61.11 in the corresponding period last year.

Revenue from contracts with customers plunged 41% year-on-year, falling to Rs20.37bn from Rs34.57bn in 2024.

Cost of sales declined slightly more sharply by 41.8%, reaching Rs15.21bn from Rs26.14bn, which led to a gross profit of Rs5.16bn, down 38.8% from Rs8.43bn previously.

On the operating front, expenses weighed on margins. Distribution costs inched up 2.5% to Rs695.37m, while administrative expenses surged 25% to Rs1.83bn.

Net impairment losses on financial assets also eased by 22.8% to Rs97.49m, partially offsetting the overall expense increase. Other expenses declined 19.3% to Rs261.23mn.

Other income contracted sharply by 40.7% to Rs187.03m, compared to Rs315.63m last year, limiting non-operating support. As a result, operating profit fell 60% to Rs2.47bn from Rs6.16bn.

Finance costs decreased 35.4% to Rs288.69mn, providing some relief to pre-tax earnings.

Profit before taxation and levy dropped 61.9% to Rs2.18bn from Rs5.71bn, with no levy reported in 2025 compared to Rs2.23mn last year.

Income tax expense fell 59.5% to Rs875.78mn, reflecting lower pre-tax profitability.

The combination of steep revenue decline, higher administrative expenses, and reduced other income led Al-Ghazi Tractors’ final net profit to contract by 63% to Rs1.30bn for 2025.

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