Karachi: Ghandhara Automobiles Ltd (GAL) is poised to announce its second-quarter fiscal year 2026 results on February 18, with expectations of a significant year-over-year increase in earnings. The company is projected to report a consolidated earnings per share (EPS) of Rs21.8, marking a 2.7-fold rise compared to the previous year, primarily driven by a substantial increase in sales revenue and a notable rise in truck and light commercial vehicle (LCV) volumes.
According to JS Global, the anticipated boost in year-over-year performance is attributed to a 136% increase in truck and LCV volumes and contributions from the JAC T9 model. Additionally, a higher share of profit from associate GHNI, which is expected to rise 2.3 times compared to the previous year, is likely to bolster overall profitability. However, on a quarter-over-quarter basis, earnings are expected to decline by 26%, largely due to a slump in JAC T9 sales, estimated at around 350 units in the second quarter compared to approximately 1,000 units in the first quarter. This decrease is expected to offset the 87% quarter-over-quarter increase in truck and LCV volumes.
JS Global maintains a Buy rating on GAL stock, with a December 2026 target price of Rs770. The stock is currently trading at an attractive forward multiple of 5.1 times for fiscal year 2026.
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