Al-Ghazi Tractors Limited has reported a significant improvement in its financial performance for the half year ended June 30, 2026, turning around from a loss in the corresponding period of the previous year.
According to the company’s unaudited interim financial statements, Al-Ghazi Tractors recorded revenue of Rs13.94 billion during the first six months of 2026, compared with Rs7.73 billion in the same period of 2025. The strong increase in revenue was accompanied by a substantial improvement in profitability.
Profitability Shows Major Improvement
The company posted a gross profit of Rs3.73 billion for the half year, up from Rs1.35 billion a year earlier. Operating profit also improved sharply, reaching Rs2.34 billion, compared with an operating loss of Rs36.85 million in the first half of 2025.
After accounting for other income, expenses, finance costs and taxation, Al-Ghazi Tractors reported profit after tax of Rs1.45 billion, compared with a loss after tax of Rs75.15 million in the corresponding period last year.
The turnaround was also reflected in earnings per share. Basic and diluted earnings per share stood at Rs24.99, compared with a loss per share of Rs1.30 in the first half of 2025.
Stronger Financial Position
The company’s balance sheet also showed improvement. Total assets increased to approximately Rs20.44 billion as of June 30, 2026, compared with Rs18.89 billion at the end of December 2025.
Current assets stood at Rs17.35 billion, with inventories of Rs6.75 billion and cash and bank balances of approximately Rs4.26 billion. Shareholders’ equity increased to around Rs11.98 billion, compared with Rs10.53 billion at the end of 2025.
Cash Flow Strengthens
One of the notable features of the latest results was the improvement in operating cash generation. Al-Ghazi Tractors generated Rs4.12 billion from operations during the six months ended June 30, 2026, compared with an operating cash outflow of Rs843.57 million in the same period last year.
After taxes, finance costs and other operating adjustments, net cash inflow from operating activities stood at Rs3.03 billion, compared with a net outflow of Rs1.66 billion a year earlier.
As a result, cash and cash equivalents increased from Rs1.45 billion at the beginning of the period to approximately Rs4.26 billion at June 30, 2026.
No New Dividend, Bonus or Right Shares Recommended
In its August 21, 2026 communication, the company said its Board of Directors had reviewed the half-year financial statements and recommended no cash dividend, no bonus shares and no right shares for the period.
The company also stated that there was no other entitlement or corporate action and no other price-sensitive information disclosed in the notice. The financial statements cover the statement of profit or loss, financial position, changes in equity and cash flows.
A Significant Turnaround
Al-Ghazi Tractors’ first-half 2026 results mark a notable shift from the company’s performance a year earlier. Higher revenue, stronger gross and operating profits, improved cash generation and a return to positive earnings point to a substantially stronger financial position.
With profit after tax reaching Rs1.45 billion and earnings per share recovering to Rs24.99, the results provide a clear indication of the company’s improved performance during the six months ended June 30, 2026. The figures are based on the company’s unaudited interim financial statements.
