Karachi: Ghandhara Automobiles Ltd (GAL) reported a significant increase in its financial performance for the fiscal year 2026, highlighting a 57% rise in earnings per share (EPS) and substantial growth in its light commercial vehicle (LCV) and truck sales. The company also noted a 36% year-over-year increase in topline revenue, primarily attributed to a more than twofold growth in LCV and truck sales.

According to JS Global, the company's corporate briefing revealed that GAL achieved a 37% year-over-year increase in overall vehicle volumes, reaching 6,041 units in FY26. This growth was observed across all segments, with heavy commercial vehicle (HCV) volumes rising by 57% to 1,113 units, while LCV volumes surged by 124% to 1,013 units. The company's management highlighted that the T9 model contributed significantly to revenue but faced pressure on profit margins due to higher costs associated with the new energy vehicle (NEV) line.

The briefing also noted that GAL's advances to customers stood at approximately Rs10 billion by the first quarter of FY27, with the company receiving full payment in advance for LCV sales. The management disclosed that the delivery time for their models is approximately two months. The company, however, has postponed the launch of the plug-in hybrid electric vehicle (PHEV) model of the T9 due to uncertainties in the automotive policy.

Ghandhara Automobiles' market share in the LCV segment is currently at 21%, with their most popular model, the JAC 1120 truck, priced at around Rs7.5 million. Meanwhile, the company's subsidiary, DF (Pvt.) Ltd, reported net sales of approximately Rs19.1 billion, with significant contributions from DF HCVs and LCVs.

The company maintains a positive outlook, with a buy call on its stock and a target price set at Rs920, as it continues to trade at an attractive forward multiple of 4.05x.