GGGL 9MFY26 profit plunges 71%

April 28, 2026 (MLN): Ghani Global Glass Limited (PSX: GGGL) reported a steep 71% plunge in its net profit for the nine months ended March 31, 2026, recording Rs70.66m compared to Rs243.22m in the corresponding period last year.

Reflecting this severe bottom-line contraction, the company's basic and diluted earnings per share (EPS) dropped to Rs0.30 from Rs1.01 in 9MFY25.

The profit decline was triggered by a slowdown in sales, particularly a massive hit to exports, coupled with shrinking margins.

GGGL’s gross local sales remained relatively flat at Rs2.32bn, but export sales plummeted by 61% to just Rs52.53m.

After accounting for sales tax, the company's net sales posted a 4% year-on-year decline, falling to Rs2.04bn from Rs2.13bn.

Because the cost of sales only dropped by 2% (to Rs1.55bn), the lower revenue volume caused the gross profit to contract by 11%, settling at Rs490.40m compared to Rs553.61m in the prior year.

On the operational front, overheads escalated significantly despite the drop in sales.

Administrative expenses jumped by 37% to Rs97.74m, and selling and distribution expenses surged by 48% to Rs20.89m.

Adding to the operational pressure, secondary support practically vanished as "other income" crashed by 89% to just Rs9.95m, down from Rs90.68m last year.

Burdened by shrinking gross margins, rising administrative costs, and the collapse in other income, the profit from operations fell by 31% to Rs373.12m.

Below the operating line, GGGL faced stagnant but heavy finance costs, which remained relatively flat at Rs266.94m.

This consistent debt burden, applied against a shrinking operating profit, caused the profit before levy and taxation to plunge by 61% to Rs106.18m.

The financial strain was further exacerbated by a 145% spike in statutory levies, which consumed Rs49.39m. This pushed the profit before income tax down by a staggering 78% to Rs56.80m.

The only relief the company found was a positive income tax credit of Rs13.87m (a turnaround from the Rs11.02m tax expense recorded last year).

While this tax reversal buffered the final blow, it was not nearly enough to prevent the net profit for the period from collapsing by 71% to Rs70.66m.

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