GTYR slips into red in 9MFY26

April 30, 2026 (MLN): Ghandhara Tyre & Rubber Company Limited (PSX: GTYR) swung to a loss for the period of Rs343.58m for the nine months ended March 31, 2026, compared to a profit of Rs63.79m in the corresponding period last year, showing a significant deterioration in the overall earnings base.

The company's basic and diluted loss per share (LPS) turned negative to Rs2.82, reversing a profit of Rs0.52 per share in 9MFY25, showing meaningful value erosion for shareholders during the period.

GTYR's net sales declined 13.11% to Rs12.13bn from Rs13.96bn. Cost of sales contracted at a lesser pace of 11.11% to Rs10.66bn, failing to fully offset the revenue shortfall. This resulted in gross profit contracting by 25.27% to Rs1.47bn from Rs1.97bn, compressing the earnings foundation from the outset.

Administrative expenses rose 6.89% to Rs390.46m while distribution costs declined marginally by 1.28% to Rs533.85m.

Other expenses declined sharply by 91.45% to Rs3.05m from Rs35.62m, providing meaningful relief. Other income remained broadly flat at Rs85.51m.

The combined effect resulted in profit from operations declining by 43.43% to Rs630.44m from Rs1.11bn.

Finance costs declined 14.61% to Rs881.49m from Rs1.03bn, providing a partial offset.

The share of profit from an associated company nearly doubled to Rs20.79m from Rs8.49m. Despite these contributions, the company swung to a loss before income tax, revenue taxes and final taxes of Rs230.25m against a profit of Rs90.60m in the prior year.

Revenue tax charges rose 80.81% to Rs147.75m from Rs81.72m, deepening the pre-tax loss to Rs378.31m against a marginal profit of Rs8.88m in the corresponding period.

A taxation reversal of Rs34.72m, though 36.76% below the prior year credit of Rs54.90m, provided limited relief but proved insufficient to prevent the company from closing in a loss position.

After accounting for taxation, Ghandhara Tyre & Rubber Company Limited closed the nine-month period with a loss for the period of Rs343.58m, compared to a profit of Rs63.79m reported in the corresponding period of last year.

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