KARACHI: Al-Ghazi Tractors Limited (PSX: AGTL) delivered an exceptional financial performance during the first quarter ended March 31, 2026, reporting a more than tenfold increase in profit after tax, driven by a sharp rise in tractor sales and improved operating margins.

According to the company’s unaudited financial results, net profit surged to Rs677.8 million in the quarter ended March 31, 2026, compared with Rs58.6 million in the corresponding period last year. Earnings per share (EPS) increased significantly to Rs11.69, up from Rs1.01 a year earlier.

The strong bottom-line growth was supported by a remarkable increase in revenue. Sales climbed to Rs7.03 billion, nearly doubling from Rs3.64 billion recorded in the same quarter of 2025. As a result, gross profit rose to Rs1.90 billion, compared with Rs780.5 million a year ago, reflecting stronger demand and improved profitability.

Operating profit also recorded substantial growth, reaching Rs1.13 billion, compared with Rs154.7 million in the corresponding quarter last year. Finance costs declined sharply to Rs7.7 million from Rs52.1 million, further supporting earnings growth before taxation.

Despite higher administrative and distribution expenses associated with increased business activity, the company’s robust revenue growth more than offset the rise in operating costs. Profit before tax stood at Rs1.12 billion, while income tax expense amounted to Rs440.6 million, resulting in a healthy after-tax profit.

The company’s financial position also strengthened during the quarter. Total assets increased to Rs20.53 billion as of March 31, 2026, from Rs18.89 billion at the end of December 2025. Cash and bank balances more than doubled to Rs3.28 billion, reflecting strong cash generation from operations. Operating cash flow turned positive at Rs1.91 billion, a significant improvement from a cash outflow recorded in the same period last year.

The Board of Directors did not recommend any cash dividend, bonus shares, or right shares for the first quarter of 2026.

The impressive quarterly results underscore Al-Ghazi Tractors’ strong operational recovery and improved market performance, positioning the company for a solid start to the financial year amid improving demand in Pakistan’s agricultural machinery sector.