GTYR FY26 loss widens to over Rs1bn

August 24, 2026 (MLN): Ghandhara Tyre and Rubber Company Limited (PSX: GTYR) reported a significant expansion in its net loss for the fiscal year ended June 30, 2026, with loss after taxation widening to Rs1.01bn compared to a net loss of Rs366.08m in the preceding year.

Reflecting this increased financial strain, the company's loss per share (LPS) expanded to Rs8.26 from a loss per share of Rs3 in FY25.

The primary factor driving the bottom-line deterioration was a contraction in gross profit combined with persistent debt-servicing costs and tax charges.

GTYR’s net sales posted a 5% year-on-year decrease, falling to Rs16.85bn from Rs17.80bn in FY25.

Cost of sales decreased at a slower pace of 1% to Rs15.34bn, causing gross profit to shrink by 34% to Rs1.51bn compared to Rs2.27bn in the prior year.

On the operational front, overheads expanded slightly.

Administrative expenses rose 15% to Rs499.74m, while distribution costs increased 1% to Rs762.16m.

Despite a reduction in other expenses (Rs6.51m) and steady other income (Rs138.55m), the gross margin compression pulled profit from operations down by 68% to Rs380.25m.

Below the operating line, high borrowing costs heavily weighed on performance.

Finance costs absorbed Rs1.15bn (down 15% from Rs1.35bn), which wiped out operating gains.

Even after incorporating a 103% increase in the share of profit from an associated company (Rs32.72m), loss before levies and taxation stood at Rs735.39m.

The company absorbed additional charges, including revenue tax of Rs211.33m, final taxes of Rs302,000, and a corporate taxation charge of Rs59.78m.

Compounded by gross margin compression and heavy finance costs, Ghandhara Tyre and Rubber Company Limited closed the fiscal year with its annual net loss crossing Rs1.01bn.

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