Sazgar Engineering Works Limited (PSX: SAZEW) reported a solid 16% increase in its net profit, reaching Rs14.88 billion for the nine months ended March 31, 2026, compared to Rs12.85 billion in the same period last year. Reflecting this healthy bottom-line growth, the company’s earnings per share (EPS) expanded proportionally to an impressive Rs246.15 , up from Rs212.67 in the corresponding period. The board also declared a dividend of Rs20 per share.
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| Metric | 9MFY26 | 9MFY25 | Change |
|---|---|---|---|
| Net Profit | Rs14.88bn | Rs12.85bn | +16% |
| EPS | Rs246.15 | Rs212.67 | +16% |
| Dividend | Rs20/share | – | – |
| Net Sales | Rs115.20bn | Rs81.43bn | +41% |
| Gross Profit | Rs29.44bn | Rs24.80bn | +19% |
| Operating Profit | Rs22.73bn | Rs20.21bn | +12% |
Revenue and Margin Performance
This profit expansion was primarily fueled by a massive surge in top-line sales, complemented by a substantial jump in secondary income. Sazgar’s net sales skyrocketed by 41% year-on-year , hitting Rs115.20 billion up from Rs81.43 billion in 9MFY25.
However, the company did face notable cost pressures. The cost of sales escalated at a faster pace of 51%, reaching Rs85.76 billion. Despite the margin squeeze from rising direct costs, the sheer volume of revenue growth pushed the gross profit up by 19% to Rs29.44 billion from Rs24.80 billion in the prior year.
Operating Expenses
On the operating side, overheads expanded significantly:
| Expense Category | 9MFY26 | 9MFY25 | Change |
|---|---|---|---|
| Distribution & Marketing | Rs4.17bn | Rs2.57bn | +62% |
| Administrative Expenses | Rs743.99m | Rs447.40m | +66% |
| Other Operating Expenses | Rs1.80bn | Rs1.57bn | +15% |
Despite these rising operational expenditures, the core business strength allowed the operating profit to secure a 12% gain , reaching Rs22.73 billion.
Non-Operating Income and Finance Costs
Below the operating line, Sazgar received a massive boost from its “other income,” which nearly doubled, surging 92% to Rs1.98 billion from Rs1.04 billion last year. This influx of non-core revenue easily absorbed a 50% increase in finance costs, which rose to Rs301.48 million.
Bottom Line
Profit before taxation stood at Rs24.41 billion, marking a 16% improvement from the Rs21.04 billion recorded in 9MFY25. After booking a proportionally higher taxation expense of Rs9.53 billion (up 16% year-on-year), the company cemented its final net profit of Rs14.88 billion for the nine-month period.
About Sazgar Engineering Works Limited
Sazgar Engineering Works Limited (PSX: SAZEW) is a leading Pakistani manufacturer of automotive products, including three-wheelers, rickshaws, and other commercial vehicles. The company has established a strong market presence through quality products and extensive distribution networks.
