Ghani Global FY26 profit plunges 36% to Rs2.7bn

September 29, 2026 (MLN): Ghani Global Holdings Limited (PSX: GGL) recorded a 36% decline in its consolidated net profit for the year ended June 30, 2026, with profit after taxation for the year falling to Rs2.69bn from Rs4.18bn (restated) in the corresponding period last year.

Showing this softer bottom-line, the company's earnings per share attributable to shareholders of the Holding Company contracted to Rs4.15 from Rs8.94 (restated) in FY25.

The top-line showed steady growth, with gross sales rising 9% year-on-year to Rs13.22bn from Rs12.13bn. After accounting for sales/service tax and trade discounts which rose 12% to Rs2.01bn net sales posted an 8% increase to Rs11.20bn from Rs10.34bn in the prior year.

Cost of sales held virtually flat, rising less than 1% to Rs6.19bn from Rs6.17bn, allowing gross profit to expand by a healthy 20% to Rs5.02bn from Rs4.17bn showing strong margin improvement on the back of revenue growth and contained costs.

On the expenditure side, distribution cost nearly tripled to Rs636.92m from Rs224.33m the primary cost headwind of the year. Administrative expenses rose 31% to Rs533.29m, while other expenses declined 4% to Rs252.17m.

The standout negative development, however, was a dramatic 89% collapse in other income to Rs240.69m from Rs2.24bn a swing of nearly Rs2bn that was the single most damaging factor of the period.

The combined below-gross subtotal swung from a net credit of Rs1.34bn last year to a net charge of Rs1.18bn in the current year, pulling profit from operations down 30% to Rs3.84bn from Rs5.51bn.

Below the operating line, finance cost rose 28% to Rs768.42m from Rs599.47m, adding further pressure. A share of profit from an associated company of Rs2.62m was recorded in the current year with no prior year comparable.

Profit before taxation and minimum tax levies declined 37% to Rs3.07bn from Rs4.91bn. Minimum tax levies rose 82% to Rs74.10m from Rs40.61m, bringing profit before taxation down 38% to Rs2.998bn from Rs4.87bn.

Taxation declined 55% to Rs310.75m from Rs685.98m a proportionally larger reduction than the pre-tax profit decline providing a meaningful partial cushion.

Profit after taxation from continuing operations fell 36% to Rs2.69bn. A negligible loss of Rs329,000 from discontinued operations was recorded in the current year with no prior year comparable, keeping profit after taxation for the year at Rs2.69bn a 36% decline.

Of the total profit, Rs1.47bn was attributable to equity holders of the Holding Company, down 54% from Rs3.17bn (restated), while non-controlling interest contributed Rs1.22bn, up 19% from Rs1.02bn last year.

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