Ghandhara Industries profit surges over twofold in H1FY26

February 18, 2026 (MLN): Ghandhara Industries Limited (PSX:GHNI) reported a net profit of Rs2.74bn for the half year ended December 31, 2025, which represents a 2.1 times increase from the Rs1.30bn profit recorded in the previous year.

The company's earnings per share surged to Rs64.42 from Rs30.44 in the corresponding period.

The automotive assembler's net sales more than doubled, increasing 2.1 times to Rs23.99bn from Rs11.58bn, demonstrating exceptional top-line growth.

Cost of sales rose 2 times to Rs18.32bn from Rs9.08bn, resulting in a gross profit of Rs5.67bn, up 2.3 times from Rs2.50bn in the prior year.

The gross profit margin improved to 23.6% from 21.6% in SPLY, indicating enhanced operational efficiency and better pricing power.

The net profit margin stood at 11.4% compared to 11.2% in the same period last year, reflecting consistent profitability at the net level.

Distribution costs increased 46% to Rs860.1m from Rs591m, while administrative expenses rose 44% to Rs302m from Rs209.1m, reflecting the costs associated with expanded business operations.

 Other expenses increased 81% to Rs183.4m from Rs101.3m. Other income increased 85% to Rs457.6m from Rs247m, providing additional support to profitability.

Profit from operations surged 2.6 times to Rs4.78bn from Rs1.84bn in 1HFY25, demonstrating exceptional operational leverage and strong business momentum.

Finance costs declined 11% to Rs44m from Rs49.3m, providing marginal relief as borrowing costs moderated.

Profit before levy and income tax reached Rs4.74bn, up 2.6 times from Rs1.79bn in the prior year. The company recorded a minimal levy of Rs50,000 in the current period.

The company recorded a total income tax expense of Rs1.99bn, up 3 times from Rs496.4m.

Despite the substantially higher tax burden, strong operational performance enabled the company to more than double its net profit.

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