Gammon Pakistan's 1QFY27 progress report shows no new projects

Mettis Global reported that Gammon Pakistan Limited (PSX:GAMON) neither secured nor started any construction project during the first quarter, which ended on September 30, 2026, according to its quarterly progress report filed with the Pakistan Stock Exchange. As a result, the company recorded no operating revenue from contract work in the period. It kept pursuing public and private sector work where financially feasible, while talking to prospective clients and exploring collaborations.

The company described the construction and infrastructure environment as challenging throughout the quarter, pointing to the SBP keeping its policy rate at 11.5% in July and September 2026. Inflation readings were 9.2% for July, 11.1% for August and 10.3% for September, measured year over year. It blamed the lack of awards on costs, cautious client spending, few commercially viable projects and slow decisions, adding that PSDP allocations of about Rs1tr for FY27 are materialising gradually.

Management kept expenses under tight control to protect liquidity and kept chasing receivables, retention monies and claims on completed projects. The board said it remains optimistic about medium-term prospects for construction, with planned national development spending and infrastructure, transport and logistics investment expected to create more opportunities over time. It stated that the lack of new awards reflected broader market conditions rather than weaker business development.