KARACHI: Ghandhara Tyre and Rubber Company Limited (PSX: GTYR) has reported a net loss for the nine months ended March 31, 2026, as rising finance costs and increased tax expenses offset the company’s operational performance. The Board of Directors approved the financial results in its meeting held on April 30, 2026, and announced that no cash dividend, bonus shares, or right shares would be distributed for the period.

According to the company’s condensed interim financial statements, GTYR posted a net loss of Rs343.6 million for the nine-month period, compared with a net profit of Rs63.8 million in the corresponding period last year. This translated into a loss per share (LPS) of Rs2.82, versus earnings per share (EPS) of Rs0.52 a year earlier.

Despite the decline in earnings, the company generated net sales of Rs12.13 billion during the period. Gross profit stood at Rs1.47 billion, although it was lower than the Rs1.97 billion recorded in the same period last year, reflecting pressure on margins amid challenging market conditions.

The biggest drag on profitability came from significantly higher financing expenses. Finance costs increased to Rs881.5 million, compared with Rs1.03 billion in the corresponding period last year, while the company also recorded a pre-tax loss of Rs378.3 million after accounting for revenue and deferred tax adjustments.

For the third quarter alone, Ghandhara Tyre reported a net loss of Rs181.5 million, compared with a profit of Rs38.6 million in the same quarter of the previous year, highlighting continued pressure on the company’s earnings during the latest reporting period.

On the balance sheet, total assets stood at Rs20.85 billion as of March 31, 2026, while shareholders’ equity declined to Rs6.39 billion from Rs6.74 billion at the end of June 2025 due to accumulated losses during the period.

The Board of Directors did not recommend any interim cash dividend or other corporate action, opting instead to preserve capital as the company navigates a challenging business environment marked by cost pressures and higher financing expenses. The complete quarterly report will be submitted separately through the Pakistan Stock Exchange’s PUCARS system.