Ghandhara Automobiles Projects Strong Growth in First Quarter of FY26

Karachi: Ghandhara Automobiles Ltd (GAL) is forecasting significant year-over-year growth in its first-quarter earnings for the fiscal year 2026, according to a report from JS Global. The company is expected to report a consolidated earnings per share (EPS) of Rs27, marking a 2.6-fold increase compared to the same period last year. This growth is largely attributed to a substantial 3.2-fold increase in sales revenue, driven by a 44% rise in truck sales volumes and contributions from the JAC T9 Hunter model.

Alongside these sales achievements, GAL also anticipates a higher year-over-year share of profit from its associate, Ghandhara Industries Ltd (GHNI), buoyed by robust volumes. Despite these positive trends, the company projects a 15% decline in earnings on a quarter-over-quarter basis, primarily due to a 36% sequential drop in volumes.

The report maintains a ‘Buy’ rating on GAL’s stock, setting a target price of Rs710 by June 2026. This target represents a potential upside of 25%. Additionally, the stock is considered attractive with a forward multiple of 5.9x.