GAL Posts Rs 1.7B Profit in 1QFY26
Ghandhara Automobiles Limited (GAL) has posted net earnings of Rs 1.7 billion in 1QFY26.
The company announced 1QFY26 result on Wednesday wherein the company posted onsolidated net earnings of Rs1.7bn (EPS Rs29.3) compared to net earnings of Rs601mn (EPS Rs10.5) in the same period last year.
The result came higher than our expectation due to higher than expected sales of Dongfeng and higher gross margin.
In 1QFY26, revenue clocked in at Rs13.5bn (up 3.5xYoY), primarily driven by the newly launched T-9 truck (around 950 units sold) along with higher sales of JAC trucks & pickups of 390 units (up 44%YoY). Moreover, we believe the Dongfeng trucks posted sales growth of 2.1xYoY to 285 units,” Sherman analysts said.
Gross margins stood at 18% (down 1ppt YoY), primarily reflecting higher sales
of trucks (JAC and Dongfeng), though partially offset by lower-margin T-9
sales.
Read More: Gandhara Automobiles Posts Rs1.8B Net Earnings
On QoQ basis, the company posted EPS of Rs29.3 compared to EPS of Rs32 in
the pervious quarter (down 8%QoQ). The decline in earning is mainly due to
revenue decline of 15%QoQ on account of lower T9 sales (down 37%QoQ) &
Trucks ( Dongfeng & Jac), down 13%QoQ.
However, sequentially, gross margins improved by 1pptQoQ, supported by a
favorable product mix, particularly the higher-margin JAC and Dongfeng
trucks.
