GAL FY26 profit surges 57%

September 17, 2026 (MLN): Ghandhara Automobiles Limited (PSX: GAL) reported a 57% surge in its consolidated net profit for the fiscal year ended June 30, 2026, reaching Rs6.42bn compared to Rs4.10bn in the preceding year.

Alongside the financial results, the board recommended a final cash dividend of Rs12 per share.

Reflecting this strong bottom-line performance, basic and diluted earnings per share (EPS) for the year expanded to Rs112.58, up from Rs71.85 in FY25.

The primary catalyst behind the performance was strong top-line growth combined with a 51% surge in gross margins.

Consolidated revenue grew by 36% year-on-year to reach Rs47.05bn, up from Rs34.51bn in FY25.

Although the cost of sales increased by 33% to Rs37.47bn, strong sales volume growth enabled gross profit to expand to Rs9.57bn compared to Rs6.36bn in the prior year.

On the operational front, overheads remained well-managed relative to sales growth.

 Distribution costs grew marginally by 1% to Rs467.22m, while administrative expenses rose 21% to Rs614.94m.

Operational gains were further supported by a 47% reduction in other expenses (falling to Rs338.55m from Rs640.00m), which helped absorb a 10% decline in "other income" (Rs732.95m) and drove profit from operations up 60% to Rs8.89bn.

Below the operating line, GAL benefited from a 71% reduction in finance costs, which dropped to Rs50.44m (down from Rs176.27m in FY25).

Furthermore, the share of profit from an associate doubled, jumping 101% to Rs1.24bn (up from Rs616.65m). Driven by interest cost relief and strong associate earnings, profit before income tax surged 68% to Rs10.02bn (after deducting final tax of Rs56.55m).

The company absorbed a 93% higher corporate income tax charge of Rs3.60bn for the year (up from Rs1.87bn in FY25).

Supported by 36% top-line revenue growth, expanded gross margins, a 71% cut in borrowing charges, and doubled associate profits, Ghandhara Automobiles Limited securely closed the fiscal year with its net profit reaching Rs6.42bn.

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