1QFY26 profit projected at Rs4.7bn; new Haval PHEV launch drives 31% revenue growth, dividend expected at Rs12/share.
“We present 1QFY26 earnings estimate for Sazgar Engineering Works Limited (SAZEW) wherein the company is expected to post net earnings of Rs4.7bn (EPS Rs77.8) as compared to profit of Rs4.2bn (EPS of Rs69.8), up 11%YoY,” analysis of Sherman Research said. Sazgar set to produce electric 2 wheelers
The growth in profitability is likely due to higher sales of Haval SUVs (up 37%YoY), supported by the successful launch of the new Haval PHEV. Meanwhile, the gross margin is expected to remain steady at 27%.
Furthermore, SAZEW is expected to announce a cash dividend of Rs 12/share (up 20%YoY) in 1QFY26. The company is currently trading ata FY26 PE of 5.6x while the stock is offering a dividend yield of 4%. 1QFY26 revenue expected at Rs34.5bn, up 31%YoY.
“ We expect the company to post net revenue of Rs34.5bn during 1QFY26 as compared to Rs26.3bn during the same period last year (up 31%YoY),” analysts said, adding that this growth is primarily attributed to higher sales of Haval HEV & PHEV SUVs.
Haval SUV sales reached 3,557 units (up 37%YoY) as compared to 2,597 units same period last year. To note, Sazgar’s Haval brand commands the highest market share in the PAMA-based SUV segment, standing at 44%.
Additionally, three-wheeler sales were reported at 5,346 units (down 2%YoY) compared to 5,435 units during the same period last year. The sales remained flat primarily due to the high base effect.
Gross Margin expected at 27% The company’s gross margin is expected to clock in at 27% in 1QFY26, compared to 29% during the same period last year. The decline primarily reflects the company’s strategic decision to maintain prices despite the imposition of a new levy under the NEV policy announced in the Federal Budget 2025.
