Ghandhara Automobiles Limited (PSX: GAL) reported a stellar financial performance for the nine months ended March 31, 2026, with net profit surging 2.23 times to Rs2.87 billion , up from Rs1.29 billion in the corresponding period last year. Reflecting this massive bottom-line expansion, earnings per share (EPS) more than doubled, reaching Rs50.40 compared to Rs22.56 in 9MFY25.
The primary engine behind this phenomenal growth was a massive spike in top-line sales. The company’s net revenue skyrocketed, reaching Rs21.70 billion compared to Rs8.38 billion in the previous year—a 159% increase.
| Metric | 9MFY26 | 9MFY25 | Change |
|---|---|---|---|
| Net Profit | Rs2.87bn | Rs1.29bn | +123% |
| EPS | Rs50.40 | Rs22.56 | +123% |
| Net Revenue | Rs21.70bn | Rs8.38bn | +159% |
| Gross Profit | Rs4.49bn | Rs1.51bn | +198% |
| Operating Profit | Rs4.60bn | Rs1.64bn | +181% |
| Finance Cost | Rs34.14m | Rs132.91m | -74% |
Revenue and Gross Profit Growth
While the cost of sales also grew significantly by 2.5 times (151%) to Rs17.22 billion, it expanded at a slightly slower pace than revenue. As a result, GAL’s gross profit nearly tripled, jumping an impressive 198% to Rs4.49 billion from Rs1.51 billion.
Operating Performance
On the operating front, overheads naturally increased alongside the expanding business volume:
| Expense Category | 9MFY26 | 9MFY25 | Change |
|---|---|---|---|
| Distribution Costs | Rs223.90m | Rs129.57m | +73% |
| Administrative Expenses | Rs260.59m | Rs206.08m | +26% |
| Other Expenses | Rs176.23m | Rs90.75m | +94% |
| Other Income | Rs772.37m | Rs556.62m | +39% |
Powered by surging gross margins and solid secondary income, profit from operations recorded a massive 2.8 times jump to Rs4.60 billion from Rs1.64 billion.
Finance Cost Relief
Below the operating line, Ghandhara Automobiles found further relief as finance costs plummeted by 74% , dropping to just Rs34.14 million from Rs132.91 million recorded in the same period last year. This combination of soaring operational profit and slashed debt-servicing costs pushed profit before income tax up by 198% to Rs4.49 billion.
Taxation Impact
The company did face a substantially heavier tax burden, booking a total taxation expense of Rs1.61 billion—a massive 7.4 fold spike (639%) from the Rs218.43 million paid last year. Despite this heavy tax hit, the sheer strength of the company’s top-line growth easily absorbed the impact, allowing the final net profit to comfortably secure a 123% increase.
About Ghandhara Automobiles Limited
Ghandhara Automobiles Limited (PSX: GAL) is a leading Pakistani automobile manufacturer, engaged in the assembly and sale of commercial vehicles, including trucks and buses. The company is part of the Ghandhara Group, a diversified business conglomerate with interests in automotive, engineering, and other sectors.
