GGL 1HFY26 profit surges 42%

February 26, 2026 (MLN): Ghani Global Holdings Limited (PSX:GGL) reported a strong 42% surge in net profit to Rs1.24bn for the half-year ended December 31, 2025, compared to Rs873.09m in the same period last year.

The company's combined earnings per share (EPS) grew to Rs1.97, up from Rs1.34 in the corresponding period of the previous year.

This solid bottom-line growth was driven by a combination of improved gross margins and a massive reduction in the company's tax burden, which more than offset a spike in operating and finance costs.

The company's top-line showed steady growth, with net sales increasing by 5% year-on-year to Rs5.22bn from Rs5bn.

Importantly, the company managed to reduce its cost of sales by 8%, dropping to Rs2.87bn from Rs3.13bn.

Because revenue grew while direct costs shrank, gross profit jumped a robust 26% to Rs2.36bn from Rs1.86bn in the prior period.

Consequently, the gross profit margin expanded significantly to 45.1% from 37.3% in H1 FY2025, reflecting excellent cost control and pricing strength at the core operational level.

On the operating side, overheads bit heavily into the expanded margins. Distribution costs spiked by 3.81 times to Rs305.37m from Rs80.16m.

Administrative expenses also increased by 25% to Rs231.52m from Rs185.99m.

Adding further pressure, other income plunged 72% to Rs54.34m from Rs192.01m last year.

Despite these surging expenses and the drop in non-core income, the sheer volume of the gross profit expansion allowed the profit from operations to edge up 5% to Rs1.77bn from Rs1.68bn.

Below the operating line, finance costs increased 18% to Rs356.26m from Rs302.92m.

Furthermore, the company faced a massive surge in minimum tax levies, which hit Rs95.65m compared to just Rs3.51m last year.

Weighed down by these factors, profit before taxation actually slipped 5% to Rs1.32bn from Rs1.38bn in the previous year.

However, the bottom line was completely rescued by a dramatically lower tax bill.

The company booked a taxation expense of just Rs73.50m, an 85% plunge from the hefty Rs505.27m paid in the same period last year.

This massively reduced tax burden easily wiped out the pre-tax deficit and propelled the final net profit to a 42% growth.

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