KARACHI, October 29, 2026: Ghandhara Industries Limited (GIL), one of Pakistan’s leading commercial vehicle manufacturers and assemblers of Isuzu trucks, buses and pick-ups, has reported a remarkable 64.6% increase in quarterly net profit to Rs2.59 billion, supported by robust vehicle sales, improving market demand and stronger operational performance.
According to the company’s unaudited financial statements for the quarter ended September 30, 2026, its profit after taxation increased to Rs2.594 billion from Rs1.576 billion in the corresponding quarter of the previous financial year, representing an additional profit of approximately Rs1.02 billion.
The Pakistan Stock Exchange-listed company recorded net sales of Rs18.89 billion during the quarter, compared with Rs11.92 billion in the same period last year, reflecting an increase of approximately 58.4%.
The performance underscores a significant improvement in Pakistan’s commercial vehicle market, where demand for trucks and buses has strengthened despite persistent economic challenges, elevated energy costs and uncertainty surrounding industrial activity.
Ghandhara Industries, which assembles and manufactures Isuzu commercial vehicles and is also associated with Zhontong buses, has benefited from the sector’s recovery while maintaining a dominant position in the domestic truck and bus market.
Ghandhara Captures 52% Of Truck And Bus Market
One of the most significant developments highlighted in the company’s quarterly directors’ review was its estimated 52% share of Pakistan’s truck and bus market.
According to data released by the Pakistan Automotive Manufacturers Association (PAMA), the country’s truck and bus segment recorded growth of 46% during the July–September 2026 quarter compared with the corresponding period of the previous year.
Ghandhara Industries reported a 44% increase in its own unit sales during the same period, broadly tracking the industry’s recovery.
The company stated that it maintained a leading position in the commercial vehicle segment, capturing an estimated 52% share of the combined truck and bus market.
The figures indicate that Ghandhara continues to command a substantial portion of Pakistan’s heavy commercial vehicle industry, although the company’s reported unit sales growth was marginally below the overall industry’s expansion.
Its market position is particularly significant because commercial vehicles are closely linked to economic activity, including freight transportation, infrastructure development, industrial production and passenger mobility.
A sustained recovery in truck and bus sales could therefore provide an important indicator of improving business confidence and transportation demand across Pakistan.
However, the company’s quarterly report does not separately quantify the contribution of trucks, buses and pick-ups to its total revenue.
Revenue Jumps Nearly Rs7 Billion In Three Months
Ghandhara Industries recorded an increase of approximately Rs6.96 billion in quarterly net sales, taking revenue from Rs11.92 billion to Rs18.89 billion.
The 58.4% increase in revenue exceeded the company’s reported 44% growth in vehicle unit sales.
This difference suggests an increase in average revenue per vehicle or changes in the product and sales mix, although the financial statements do not provide sufficient vehicle-level information to determine the precise contribution of pricing and product composition.
The company’s cost of sales increased from Rs9.08 billion to Rs14.19 billion, representing growth of approximately 56.4%.
Despite the substantial increase in production and sales costs, revenue growth outpaced cost growth, enabling the manufacturer to improve its gross profitability.
Gross profit rose from Rs2.85 billion in the corresponding quarter last year to Rs4.69 billion in the latest quarter, an increase of approximately 64.9%.
The company’s gross profit margin consequently improved from approximately 23.9% to 24.9%.
This improvement indicates that Ghandhara generated a slightly higher proportion of gross profit from each rupee of revenue, even as manufacturing and input costs remained elevated.
Operating Profit Crosses Rs4 Billion
Ghandhara’s operating profit increased to Rs4.11 billion during the quarter, compared with Rs2.52 billion in the corresponding period last year.
The increase of approximately 62.8% reflects the company’s ability to convert higher revenues into stronger operating earnings.
Its operating profit margin improved from approximately 21.2% to 21.7%.
However, the company’s operating expenses also increased during the quarter.
Distribution expenses surged to Rs715.65 million from Rs314.48 million, representing an increase of approximately 127.6%.
Administrative expenses increased to Rs158.07 million from Rs114.99 million, while other expenses rose to Rs191.06 million from Rs169.61 million.
The sharp increase in distribution expenses is particularly notable, as these costs grew substantially faster than revenue.
Nevertheless, higher gross profit and other income helped the company absorb the increase in operating expenditure.
Other income rose to Rs477.07 million from Rs274.37 million, an increase of approximately 73.9%.
This contributed positively to operating profitability, although the company’s core gross profit growth remained the principal driver of the improvement in quarterly earnings.
Earnings Per Share Rise To Rs60.89
The company’s strong profitability translated into a substantial increase in earnings per share.
Basic and diluted earnings per share increased to Rs60.89 during the quarter, compared with Rs36.98 in the corresponding quarter last year.
This represents an increase of approximately 64.7%, consistent with the growth in net profit.
Profit before taxation rose to Rs4.10 billion from Rs2.51 billion, while the company’s taxation charge increased to Rs1.50 billion from Rs930.32 million.
Despite the higher absolute tax expense, Ghandhara maintained a net profit margin of approximately 13.7%, compared with 13.2% in the previous year’s corresponding quarter.
The improvement demonstrates that the company’s profitability grew slightly faster than its revenue.
Financial Performance At A Glance
| Financial indicator | Jul–Sep 2026 | Jul–Sep 2025 |
| Net sales | Rs18.89bn | Rs11.92bn |
| Gross profit | Rs4.69bn | Rs2.85bn |
| Operating profit | Rs4.11bn | Rs2.52bn |
| Profit before tax | Rs4.10bn | Rs2.51bn |
| Profit after tax | Rs2.59bn | Rs1.58bn |
| Earnings per share | Rs60.89 | Rs36.98 |
| Gross profit margin | 24.9% | 23.9% |
| Net profit margin | 13.7% | 13.2% |
Source: Ghandhara Industries Limited, unaudited financial statements for the quarter ended September 30, 2026. Margins and percentage changes calculated from reported figures.
Total Assets Climb Above Rs48 Billion
Beyond the sharp improvement in quarterly profitability, Ghandhara Industries also reported growth in its balance sheet.
Total assets increased to Rs48.11 billion as of September 30, 2026, compared with Rs46.27 billion at the end of June 2026.
The approximately Rs1.84 billion increase in assets reflects expansion in the company’s asset base during the first quarter of its financial year.
Property, plant and equipment increased to Rs11.39 billion from Rs10.50 billion, indicating additional investment in the company’s fixed asset base.
Stock-in-trade also increased significantly, rising to Rs16.99 billion from Rs13.57 billion.
The approximately Rs3.41 billion increase in inventory represents growth of around 25.1% in just three months.
Higher inventory levels may support future production and sales activity, although they also increase the amount of capital tied up in stock.
The company’s short-term investments rose to Rs14.21 billion from Rs13.35 billion, indicating that it continued to hold a substantial investment portfolio.
Shareholders’ Equity Strengthens To Rs24.95 Billion
Ghandhara Industries reported total shareholders’ equity of Rs24.95 billion at the end of September 2026, compared with Rs22.36 billion at the end of June.
The increase of approximately Rs2.59 billion largely reflects the profit generated during the quarter.
Unappropriated profit increased to Rs15.39 billion from Rs12.79 billion.
The company’s issued and paid-up share capital remained unchanged at approximately Rs426.09 million, comprising 42.61 million ordinary shares with a face value of Rs10 each.
The growth in shareholders’ equity has strengthened the company’s reported financial position and provides a larger capital base to support future operations.
Cash Balance Declines Despite Strong Profitability
Although Ghandhara Industries delivered a substantial increase in accounting profits, its cash flow statement presents an important additional dimension of its quarterly financial performance.
Cash and bank balances declined sharply to Rs34.89 million at the end of September 2026 from Rs2.03 billion at the beginning of the quarter.
The company reported net cash used in operating activities of Rs179.78 million, compared with net operating cash outflows of Rs1.43 billion in the corresponding quarter last year.
This represents a considerable year-on-year improvement in operating cash flow, even though the company continued to report a net cash outflow after operating payments.
The company generated approximately Rs1.79 billion in cash from operations before the other operating cash flow adjustments, compared with cash used in operations of Rs1.07 billion in the corresponding quarter last year.
However, income tax payments of approximately Rs1.90 billion, alongside other payments, contributed to the net operating cash outflow.
Meanwhile, investing activities resulted in a net cash outflow of Rs1.82 billion, compared with a net inflow of Rs854.53 million in the corresponding quarter last year.
Fixed capital expenditure increased significantly to Rs966.58 million from Rs189.92 million.
The financial statements also recorded an Rs858.22 million cash outflow under the investment redemption line.
Together, these movements contributed to a net decrease of approximately Rs2 billion in cash and cash equivalents during the quarter.
Nevertheless, the company continued to report short-term investments of Rs14.21 billion, an important consideration when assessing its overall liquidity position.
The figures highlight the distinction between accounting profitability and cash generation, particularly during periods of increased investment, inventory accumulation and tax payments.
Contract Liabilities Remain Above Rs18 Billion
Another significant feature of Ghandhara Industries’ balance sheet is the substantial amount recorded under contract liabilities.
These stood at Rs18.09 billion as of September 30, 2026, compared with Rs18.44 billion at the end of June.
Contract liabilities generally represent consideration received or due before a company fulfils the corresponding contractual performance obligations.
Their substantial size is relevant to understanding the company’s working capital structure and future delivery commitments.
However, the quarterly financial statements do not provide sufficient information in the headline figures to establish how much of the balance relates to particular vehicle categories or delivery schedules.
Trade and other payables increased to Rs4.83 billion from Rs4.20 billion.
Total current liabilities declined slightly to Rs23.06 billion from Rs23.72 billion, while current assets increased to Rs36.70 billion from Rs35.75 billion.
As a result, the company’s current ratio improved to approximately 1.59 from 1.51 at the end of June 2026.
This indicates an improvement in the coverage of short-term liabilities by current assets, although a substantial proportion of those assets remains tied up in inventory and investments.
Commercial Vehicle Recovery Signals Improving Market Activity
The 46% growth reported by PAMA in Pakistan’s truck and bus segment represents one of the most encouraging indicators in the company’s quarterly review.
Commercial vehicle demand is often associated with broader economic activity because businesses purchase trucks and buses to support transportation, logistics, industrial supply chains and passenger services.
An increase in commercial vehicle sales can reflect stronger demand for transportation capacity, replacement of ageing fleets and investment in business operations.
However, quarterly sales growth alone cannot establish the strength or sustainability of a broader economic recovery.
The commercial vehicle industry remains sensitive to financing costs, fuel prices, exchange rate movements, imported components, infrastructure spending and changes in industrial demand.
For Ghandhara Industries, the combination of higher industry volumes and a commanding market share has created favourable conditions for revenue and profit growth.
The company’s performance also demonstrates how commercial vehicle manufacturers can benefit from improving demand even when the wider operating environment remains challenging.
Management Flags Inflation, Energy Costs And Exchange Rate Risks
Despite the strong quarterly results, Ghandhara Industries’ management has adopted a cautious approach towards the future.
In its directors’ review, the company acknowledged that Pakistan’s economic environment continues to face inflationary pressures, elevated energy and input costs, and cautious consumer spending.
Management also identified interest rates, exchange rate fluctuations, geopolitical developments, changes in purchasing power and the domestic law and order situation as potential risks to business performance.
The company said it would continue focusing on operational efficiency, cost optimisation, prudent financial management and risk mitigation.
Its strategy is aimed at maintaining growth while strengthening its competitive position in Pakistan’s commercial vehicle market.
The directors expressed confidence in the company’s established customer base and competitive product portfolio, while recognising that future performance would remain dependent on prevailing economic and market conditions.
Isuzu Business Remains Central To Ghandhara’s Position
Ghandhara Industries was incorporated in February 1963 and is listed on the Pakistan Stock Exchange.
Its principal activities include the assembly, progressive manufacturing and sale of Isuzu trucks, buses and pick-ups, along with Zhontong buses.
The company operates within Pakistan’s commercial vehicle manufacturing industry, which plays a critical role in supporting transportation, industrial logistics and passenger mobility.
According to its quarterly financial statements, Bibojee Services (Private) Limited is the company’s ultimate holding company, holding approximately 16.62 million ordinary shares.
The company’s board is chaired by Ali Kuli Khan Khattak, while Ahmad Kuli Khan Khattak serves as Chief Executive Officer.
Their directors’ review, dated October 27, 2026, highlighted the company’s strong performance and reaffirmed management’s commitment to sustainable growth.
Outlook: Strong Earnings, But Cash Flow And Costs Remain Key Indicators
Ghandhara Industries has entered the 2026–27 financial year with strong earnings momentum, a substantial share of Pakistan’s truck and bus market and an improved equity position.
The 64.6% increase in net profit, 58.4% growth in revenue and rise in earnings per share to Rs60.89 demonstrate the company’s ability to capitalise on improving commercial vehicle demand.
At the same time, the financial statements highlight several indicators that will require attention in subsequent quarters, particularly the increase in distribution expenses, higher inventory levels, significant capital expenditure and the decline in cash balances.
The company’s sizeable short-term investment holdings and strengthened shareholders’ equity provide important context for assessing those developments.
Much will depend on whether Pakistan’s truck and bus market can sustain its recent recovery and whether Ghandhara can maintain its leading market position while managing production costs and working capital requirements.
For now, the company’s latest quarterly results represent a strong start to the financial year, with substantial profit growth and rising revenues reinforcing its position as one of Pakistan’s leading commercial vehicle manufacturers.