Al-Ghazi Tractors Limited (AGTL) has reported a significant improvement in its financial performance for the third quarter and nine months ended September 30, 2026, posting a substantial increase in revenue and returning to profitability compared with the corresponding period last year.
According to the company’s unaudited financial statements approved by its Board of Directors on October 20, 2026, revenue for the third quarter reached Rs. 3.57 billion, compared with Rs. 2.03 billion in the same quarter of 2025. For the nine-month period, revenue rose to Rs. 17.51 billion from Rs. 9.76 billion a year earlier.
Profitability Shows Significant Improvement
The company’s earnings recorded a strong recovery during the reporting period. Gross profit for the third quarter increased to Rs. 747.67 million from Rs. 376.52 million in the corresponding quarter last year.
Operating profit stood at Rs. 277.32 million, reversing an operating loss of Rs. 176.08 million reported in the third quarter of 2025. Profit before tax reached Rs. 296.35 million, compared with a loss of Rs. 299.10 million in the same period last year.
After taxation, Al-Ghazi Tractors reported a quarterly profit of Rs. 210.09 million, against a loss of Rs. 225.59 million in the corresponding period of 2025. Earnings per share also improved to Rs. 3.62 from a loss per share of Rs. 3.89.
The nine-month results reflected an even stronger turnaround. Profit after taxation reached Rs. 1.66 billion, compared with a loss of Rs. 269.78 million in the same period last year. Earnings per share increased to Rs. 28.61 from a loss per share of Rs. 4.65.
Board Recommends Bonus and Right Shares
Alongside the improved financial results, the Board of Directors recommended the issuance of bonus shares and right shares.
The company stated that no interim cash dividend was recommended for the third quarter ended September 30, 2026. This follows the interim dividend position already reflected in the company’s announcement.
The Board recommended bonus shares in the proportion specified in its official notice, in addition to the interim bonus shares previously issued. It also recommended right shares at par or at a discount or premium, as determined under the terms announced by the company.
Shareholders should review the official corporate notice for the exact entitlement ratios and applicable terms before making investment decisions.
Financial Position and Cash Flows
As of September 30, 2026, Al-Ghazi Tractors reported total assets of Rs. 20.96 billion, compared with Rs. 18.89 billion at December 31, 2025. Share capital remained unchanged at Rs. 289.82 million, while total equity and reserves increased to Rs. 12.19 billion from Rs. 10.53 billion.
The company’s cash flow statement, covering the first nine months of 2026, showed a net operating cash outflow of Rs. 886.68 million. Net cash outflow from investing activities stood at Rs. 116.84 million, while financing activities recorded a net cash outflow of Rs. 11.46 million.
Cash and cash equivalents declined to Rs. 433.84 million at the end of September 2026 from Rs. 1.45 billion at the beginning of the period. This indicates that, despite improved profitability, cash flow and liquidity remain important areas for investors to monitor.
Outlook for Investors
Al-Ghazi Tractors’ latest results highlight a notable recovery in revenue, operating performance and earnings. The return to profitability during the third quarter and the strong nine-month earnings performance represent a significant improvement over the previous year’s results.
However, the company’s future performance will also depend on its ability to sustain sales growth, manage operating costs and maintain healthy cash flows. Investors will be watching the implementation and final terms of the proposed bonus and right shares, alongside upcoming financial results, to assess the company’s outlook.
Conclusion: Al-Ghazi Tractors Limited has delivered a strong financial turnaround in the first nine months of 2026, with higher revenue, improved profitability and significantly stronger earnings per share. While the proposed share-related measures may attract shareholder attention, continued earnings growth and cash flow management will remain key factors in evaluating the company’s performance.
