GTYR swings to loss in 1HFY26

February 19, 2026 (MLN): Ghandhara Tyre & Rubber Company Limited (PSX:GTYR)  reported a net loss of Rs162.1m for the half year ended December 31, 2025, as it swinged from a net profit of Rs25.2m recorded in the same period last year.

The company's loss per share stood at Rs1.33 compared to earnings per share of Rs0.21 in the corresponding period of the previous year.

The tyre manufacturer's net sales declined 9% year-on-year to Rs8.21bn from Rs9bn.

Cost of sales decreased 8% to Rs7.07bn from Rs7.73bn, resulting in a gross profit of Rs1.13bn, down 11% from Rs1.27bn in the prior period.

The gross profit margin declined to 13.8% from 14.1% in H1 FY2025, indicating slight margin compression. The net profit margin turned negative at -2% from positive 0.3% in the same period last year, reflecting the company's swing to loss.

Administrative expenses increased 29% to Rs287.6m from Rs223.4m, while distribution costs rose marginally by 2% to Rs349.9m from Rs343.9m.

Other income declined 2% to Rs70.9m from Rs72.1m, while other expenses dropped sharply by 82% to Rs3m from Rs16.7m. Profit from operations declined 26% to Rs563.5m from Rs761.7m in H1 FY2025, demonstrating the pressure from lower gross profit and higher administrative costs.

Finance costs decreased 19% to Rs597.4m from Rs733.3m, providing some relief.

The company's share of profit from an associated company increased to Rs15.3m from Rs5.3m, though this could not offset the operational challenges.

Loss before income tax widened significantly to Rs80.9m from a loss of Rs27.8m.

The company recorded a tax charge of Rs81.2m compared to a tax reversal of Rs53m in the corresponding period last year. The shift from a tax credit to a tax charge further pressured the bottom line, contributing to the swing to loss.

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