Ghandhara Industries Limited (PSX: GHNI), which assembles and sells Isuzu trucks, buses and pick-ups as well as Zhongtong buses, published its results for the first quarter of its 2027 financial year (July to September 2026) on 27 October 2026.
The headline: a profit after tax of Rs 2.59 bn, or Rs 60.89 a share, up 64.6% from Rs 1.58 bn (Rs 36.98) a year earlier. It is the company’s best quarter in at least the last five. Shareholders have approved a final dividend of Rs 12 a share for the 2026 financial year, at the annual meeting on 13 October 2026; it will appear in the October to December accounts.
The quarter in numbers
| Rs M | Jul to Sep 2026 | Jul to Sep 2025 | Change |
|---|---|---|---|
| Sales | 18,889 | 11,924 | +58.4% |
| Cost of sales | (14,194) | (9,077) | +56.4% |
| Gross profit | 4,695 | 2,848 | +64.9% |
| Gross margin | 24.9% | 23.9% | |
| Distribution expenses | (716) | (314) | 2.3 times |
| Administrative expenses | (158) | (115) | +37.5% |
| Other expenses | (191) | (170) | +12.6% |
| Other income | 477 | 274 | +73.9% |
| Profit from operations | 4,107 | 2,523 | +62.8% |
| Finance cost | (12) | (10) | |
| Profit before tax | 4,095 | 2,506 | +63.4% |
| Taxation (36.6% of pre-tax profit against 37.1%) | (1,501) | (930) | +61.3% |
| Profit after tax | 2,594 | 1,576 | +64.6% |
| Earnings per share, Rs | 60.89 | 36.98 | +64.7% |
What drove the result
A strong market for trucks and buses. According to the industry association figures quoted by the directors, truck and bus sales in Pakistan rose 46% in the quarter. Ghandhara’s own unit sales rose 44%, and it estimates its share of the truck and bus market at about 52%.
Better margins on higher volume. Sales rose 58%, faster than units, which suggests higher prices or a richer mix of vehicles. Cost of sales rose a little less than sales, lifting the gross margin to 24.9% from 23.9%.
Selling costs rose with volume. Distribution expenses more than doubled to Rs 716 M, and administrative costs rose 38%. Other income rose 74% to Rs 477 M. Operating profit rose 63% to Rs 4.1 bn.
Almost no interest cost. The company has no borrowings, so finance cost was only Rs 12 M. With a steady tax rate of about 37%, almost all of the operating gain reached shareholders.
Cash and the balance sheet
- Customer advances fund the business. Contract liabilities, mainly money received from customers before delivery, were Rs 18.1 bn, about the same as in June. That is a sign of a healthy order book.
- More stock. Stock in trade rose to Rs 17.0 bn from Rs 13.6 bn, and the company paid Rs 1.9 bn of tax. As a result, operating cash flow was slightly negative (−Rs 0.18 bn), against −Rs 1.43 bn a year earlier.
- Investment. Capital spending rose to Rs 967 M from Rs 190 M, and short-term investments rose to Rs 14.2 bn while cash fell to Rs 35 M.
- Equity rose to Rs 24.9 bn, about Rs 586 a share, including a Rs 7.6 bn revaluation surplus on fixed assets.
Valuation snapshot
At the 28 October close of Rs 1,167.28:
| Measure | Value |
|---|---|
| Earnings per share, last 12 months (October 2025 to September 2026) | about Rs 186.5 |
| Price to earnings | about 6.3 times |
| Book value per share | about Rs 586, so price to book of about 2.0 |
| Final dividend for 2026 | Rs 12 a share, a yield of about 1.0% |
| Market value (42.6 million shares) | about Rs 49.7 bn |
| Share price, last 52 weeks | low Rs 598.73, high Rs 1,342.53 |
The share has almost doubled from its 52-week low but is about 13% below its high. At about 6 times earnings it is not expensive on profit, although the dividend is small: the company pays out only a small part of what it earns.
What to watch next
- Truck and bus demand. The industry grew 46% in the quarter; demand for commercial vehicles tends to follow the wider economy, infrastructure spending and interest rates.
- Margins. The exchange rate and imported parts costs drive the cost of sales.
- Customer advances. Rs 18 bn of advances shows strong orders; a fall would be an early sign of slowing demand.
- Payouts. A Rs 12 dividend against Rs 162.57 of earnings per share for 2026 is a payout of about 7%.
The bottom line
Ghandhara had a very strong quarter: vehicle sales up 44%, revenue up 58%, a wider margin and almost no interest cost, which together lifted profit 65%. The company is debt-free, holds Rs 14 bn of short-term investments and has a large book of customer advances. The main question is how long the commercial vehicle upturn lasts.
You can follow GHNI’s price, Pulse Score, results calendar and off-market trades in the Market Pulse Hub dashboard under PSX.
Bilal, Market Pulse Hub
Source: Ghandhara Industries Limited, quarterly report for the quarter ended 30 September 2026 (directors’ review and unaudited condensed interim financial statements). Earlier quarters from company filings. Prices from the PSX data portal. Twelve-month, per-share and valuation figures are our calculations. This article is for education and information only and is not investment advice.