Sherman Market analysts have projected the earnings of Ghandhara Automobiles (GAL) in 2QFY26 earnings at Rs 1.6 billion.
“We present 2QFY26 earnings estimate for Ghandhara Automobiles (GAL) wherein company is expected to post consolidated net earnings of Rs1.6bn (EPS Rs28.5) as compared to net earnings of Rs469mn (EPS Rs8.2) in the same period last year, up 3.5xYoY,” Sherman capital said in a report.
The improvement in profitability is likely due to higher volumetric sales of JAC and Dongfeng trucks as well as meaningful contribution from the T9 Hunter pickup. 2QFY26 revenue expected at Rs12.4bn, up 3.3xYoY GAL is expected to record net revenue of Rs12.4bn during 2QFY26 as compared to Rs3.8bn during the same period last year, (up 3.3xYoY).
Read More: Gandhara Automobiles Posts Rs1.8B Net Earnings
This growth is expected due to higher sales of Trucks and pickups (JAC & Dongfeng) as we believe cumulative sales of both the brands is likely to be around 1010 units (up 140%YoY) in 2QFY26 whereas 665 units sales assumed from T9 Hunter.
The company’s gross margin is projected to reach at 19% in 2QFY26, (up 1pptYoY) mainly due to higher share of better margin products (trucks). Moreover, we expect other income to reach at Rs167mn (up 191%YoY) which is largely driven by higher interest income from customer advances for T9 Hunter.
The company has adequate cash & short term investment of Rs5.5bn which is contributing to higher interest income. Additionally, profit from associates is expected to boost earnings, with a contribution of Rs284mn (up 1.5xYoY) from Ghandhara Industries, in which the company holds a 18% stake. All in all we expect, JAC, Dongfeng and T9 Hunter to contribute EPS of Rs5.3, Rs9.8 and Rs8.3 in overall earnings beside Rs4.9 contribution from associate.
Net Earning to Decline by 3%QoQ On a sequential basis, earnings are projected to decline by 3%QoQ, primarily due to a 30%QoQ decline in T9 pickup sales as deliveries normalize following a strong 4QFY25. However, sales of JAC and Dongfeng are expected to remain robust growing by 87% and 5% on QoQ basis. Thus, on cumulative basis, GAL is expected to record consolidated net earnings of Rs3.3bn (Eps Rs57.8) versus net profit of Rs1.1bn (EPS Rs18.8) last year, up 3x.
