KARACHI, April 20 — Sazgar Engineering Works Limited reported its highest-ever quarterly profit for the third quarter of fiscal year 2025-26, driven by strong vehicle sales and revenue growth, the company said in a statement.
Profit after tax (PAT) for the January–March quarter rose to Rs6.44 billion, translating into earnings per share (EPS) of Rs106.5, up 3% compared with the same period last year.
For the nine months ended March, cumulative earnings stood at Rs14.88 billion, with EPS of Rs246.2, reflecting a 16% year-on-year increase.
The company also announced a cash dividend of Rs20 per share for the quarter, taking total payouts to Rs50 per share during the nine-month period.
Revenue growth remained a key driver of performance. Net revenue for the third quarter climbed 29% year-on-year to Rs47.36 billion, while cumulative revenue for 9MFY26 rose 41% to Rs115.2 billion.
The increase was largely attributed to higher sales volumes of the Haval brand vehicles, which rose 47% year-on-year to 5,420 units during the quarter.
However, profitability margins came under pressure. Gross margins for 9MFY26 declined to 25.6% from 30.5% a year earlier, while quarterly margins dropped to 26.8% from 32.6%. The contraction was linked to the withdrawal of concessionary duties, currency depreciation and a shift in product mix towards petrol variants.
Operating costs also increased, with distribution expenses rising 62% year-on-year in both quarterly and cumulative terms, reflecting higher delivery volumes.
Other income surged 155% in the quarter to Rs761 million, supported by increased cash holdings, while finance costs nearly doubled to Rs102 million.
The company’s effective tax rate remained stable at around 39%, broadly unchanged from the previous year.