GGGL's Q1FY26 profit halves to Rs24m

October 29, 2025 (MLN): Ghani Global Glass Limited (PSX: GGGL) reported a profit after taxation of Rs24.37mn for the quarter ended September 30, 2025, down 52% from Rs50.38mn in the corresponding quarter last year.

Earnings per share declined 52% to Rs0.1 compared to Rs0.21 in 1QFY25.

The board of directors of the company did not declare any dividend for the period.

Gross sale (local) increased 24% year-on-year to Rs894.21mn from Rs719.98mn, while the company reported export sales of Rs21.14mn in 1QFY26, which were absent in the prior period.

Total gross sale rose 27% to Rs915.36mn from Rs719.98mn, demonstrating strong demand during the quarter.

Sales tax increased 19% to Rs130.22mn from Rs109.01mn. Trade discounts stood at Rs1.80mn in 1QFY25, which were absent in the current quarter.

Net sales grew 29% to Rs785.13mn from Rs609.17mn in 1QFY25. Cost of sales rose 37% to Rs642.31mn from Rs467.50mn.

Gross profit increased marginally by 1% to Rs142.83mn against Rs141.67mn in 1QFY25, with the gross margin contracting to 18.2% from 23.3% in the prior year quarter, reflecting significantly higher production costs relative to sales growth.

Administrative expenses increased 13% to Rs25.44mn from Rs22.47mn, while selling and distribution expenses declined 36% to Rs4.95mn from Rs7.76mn. Other operating expenses decreased 53% to Rs2.13mn from Rs4.5mn. Total expenses declined 6% to Rs32.52mn from Rs34.73mn last year.

Other income declined 76% to Rs13.14mn from Rs55.78mn in the previous year.

The company recorded a profit from operations of Rs123.45mn, down 24% from Rs162.72mn in 1QFY25.

Finance costs decreased 18% to Rs83.92mn from Rs102.03mn, providing some relief to the bottom line.

Profit before levy and taxation stood at Rs39.52mn, down 35% from Rs60.69mn in 1QFY25. Final taxation increased 47% to Rs15.15mn from Rs10.32mn. The company reported no income tax for the period in either quarter.

The company concluded 1QFY26 with a net profit of Rs24.37mn, delivering a net profit margin of 3.1% compared to 8.3% in 1QFY25.

The profit decline was primarily driven by a dramatic 76% drop in other income and margin compression due to substantially higher cost of sales, partially offset by lower finance costs and reduced operating expenses.

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