Al-Ghazi Tractors Limited (AGTL) has engineered a dramatic operational turnaround for the nine months ended September 30, 2026, aggressively reversing previous losses to post a net profit of Rs1.66 billion. Operating under the strategic oversight of Chief Executive Officer Yasin Seker, the heavy machinery manufacturer capitalized on surging agricultural equipment demand and a steep decline in corporate finance costs to pull its bottom line out of negative territory.
The recovery directly translated to positive shareholder equity, with basic and diluted earnings per share (EPS) rebounding to Rs28.61, up from a catastrophic loss per share (LPS) of Rs4.65 recorded during the same period last year.
“Backed by strong tractor dispatches, core gross margin expansion, credit loss reversals, and major debt servicing relief, Al-Ghazi Tractors Limited securely closed the nine-month period with a net profit of Rs1.66bn.”
The primary macroeconomic catalyst for this recovery was a robust 79.4% expansion in customer contract revenues. Net sales for the nine-month period (9MCY26) jumped to Rs17.51 billion, up from Rs9.76 billion in the prior-year period. Although raw material inflation and elevated production inputs pushed the cost of sales up 62.3% to Rs13.03 billion, the sheer volume of new dispatches allowed gross profit to organically expand by 159%, settling at Rs4.48 billion.
| Statement of Profit or Loss (9MCY26) PNG | September 30, 2026 PNG | September 30, 2025 PNG | Variance PNG |
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Revenue from contracts with customers
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Rs17.51 billion
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Rs9.76 billion
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+79.4%
|
|
Cost of sales
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(Rs13.03 billion)
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(Rs8.03 billion)
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+62.3%
|
|
Gross profit
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Rs4.48 billion
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Rs1.73 billion
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+159.0%
|
|
Distribution expenses
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(Rs489.19 million)
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(Rs390.83 million)
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+25.2%
|
|
Administrative expenses
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(Rs1.53 billion)
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(Rs1.39 billion)
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+9.8%
|
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Operating profit / (loss)
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Rs2.61 billion
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(Rs181.96 million)
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Turnaround
|
|
Finance costs
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(Rs11.39 million)
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(Rs247.64 million)
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-95.4%
|
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Profit / (loss) after taxation
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Rs1.66 billion
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(Rs269.78 million)
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Turnaround
|
|
Basic and diluted EPS
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Rs28.61
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(Rs4.65)
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Turnaround
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On the operational front, corporate overheads expanded out of necessity to support the scaling of sales volume. Distribution expenses rose 25.2% to Rs489.19 million, while administrative costs grew 9.8% to Rs1.53 billion. However, the company’s operating performance received a major boost from a net credit loss allowance reversal of Rs151.11 million—reversing a severe provision of Rs129.86 million enacted in 9MCY25. This crucial accounting adjustment directly propelled operating profit to Rs2.61 billion, completely reversing a former operating loss of Rs181.96 million.
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For the third quarter (Q3CY26) isolated, AGTL recorded a net profit of Rs210.09 million with an EPS of Rs3.62, stabilizing the ledger after a deep loss of Rs225.59 million in Q3CY25.
Below the operating line, AGTL benefitted immensely from critical debt-servicing relief. Finance costs collapsed by 95.4%, dropping to a mere Rs11.39 million from a suffocating Rs247.64 million in the previous year. Coupled with a 146.1% spike in “other income”—which reached Rs282.38 million—the company’s profit before taxation hit Rs2.65 billion. The tractor manufacturer successfully absorbed a corporate taxation charge of Rs993.88 million to securely close the three-quarter period entirely in the black.