Sazgar Engineering Delivers Strong Growth in Nine Months, Announces Rs20 Per Share Dividend

Sazgar Engineering Works Limited has reported a strong financial performance for the third quarter and nine months ended March 31, 2026, supported by robust growth in its four-wheeler business and continued expansion of its production capabilities.

According to the company’s unaudited quarterly financial statements, Sazgar’s sales for the nine-month period rose 41.47% year-on-year to Rs115.20 billion, compared with Rs81.43 billion in the same period last year. Gross profit increased by 18.74% to Rs29.44 billion, while pre-tax profit climbed 16% to Rs24.41 billion. Earnings per share also improved from Rs212.67 to Rs246.15.

Four-Wheeler Segment Leads Growth

The company’s four-wheeler operations remained the key driver of its performance. Nine-month four-wheeler production reached 12,871 units, compared with 8,313 units in the corresponding period, representing an increase of 54.83%. Three-wheeler production also increased modestly to 19,955 units from 19,638 units, while tractor wheel-rim production declined 5.93%.

Revenue from the four-wheeler business reached Rs107.26 billion during the nine months, compared with Rs73.39 billion a year earlier. In contrast, three-wheeler revenue stood at Rs7.36 billion, while tractor wheel rims contributed Rs0.58 billion.

The company said it completed an expansion plan for its four-wheeler business during the period. The project included a new assembly line, a 5.7 MW solar power system and new warehousing facilities. Sazgar is also planning another major expansion involving a fully automatic paint shop, related civil works and ancillary equipment, with an estimated investment of Rs22 billion, excluding land costs.

TANK-500 Rollout Adds to Growth Strategy

Another significant development has been the rollout of the CKD model of TANK-500. The company expects the new model to strengthen its four-wheeler product portfolio, improve its market position and support future revenue and profitability growth.

Sazgar also plans to acquire approximately 900 kanals of land near its four-wheeler plant, subject to successful negotiations, to accommodate future operational requirements. It has additionally purchased two five-kanal commercial plots in Lahore for company-owned showrooms, after-sales service facilities and commercial offices.

Profitability Remains on an Upward Track

During the third quarter alone, sales increased 28.91% to Rs47.36 billion from Rs36.74 billion. Gross profit rose to Rs12.70 billion, while pre-tax profit reached Rs10.57 billion. Quarterly earnings per share improved to Rs106.51 from Rs103.06.

For the nine months, net profit after taxation stood at Rs14.88 billion, compared with Rs12.85 billion in the same period of the previous year.

The company’s balance sheet also strengthened, with shareholders’ equity increasing to Rs35.56 billion as of March 31, 2026, compared with Rs23.71 billion at June 30, 2025. Cash and bank balances stood at Rs33.26 billion.

Third Interim Dividend Declared

Sazgar’s strong performance was accompanied by another dividend announcement. The board declared a third interim cash dividend of Rs20 per ordinary share, equivalent to 200%, in addition to cumulative interim dividends of 300% already paid during the financial year.

The company’s equity statement shows that the first and second interim dividends for FY2026 were each Rs15 per share, while the latest Rs20 per-share dividend brings the declared interim distributions for the year to a substantial level.

Outlook

Sazgar remains cautiously optimistic about its prospects, pointing to improving macroeconomic conditions and a gradual recovery in industrial activity. At the same time, the company highlighted continuing risks from geopolitical tensions, consumer affordability and fuel prices.

The company expects the recovery in the automobile sector to create opportunities, particularly in new energy vehicles. It believes the TANK-500 rollout, continued capacity expansion and broader product offerings will help strengthen its market position and support sustainable growth.

Overall, Sazgar Engineering’s nine-month results point to a business benefiting significantly from the revival in Pakistan’s automobile market, with the four-wheeler segment emerging as the principal engine of revenue and production growth. The combination of higher sales, increased production capacity, new models and substantial shareholder distributions makes the company’s latest results notable for Pakistan’s automotive sector.