PACRA revises Ghandhara Industries’ outlook to positive

Mettis Global reported that PACRA has affirmed Ghandhara Industries Limited (PSX: GHNI) with long-term A+ and short-term A1 entity ratings, while raising the outlook to positive from stable. The revision reflects a strong FY26 in which the company remained the leader in the country's truck and bus segment, with greater sales volume, expanding revenue and stronger profits.

Market share slipped during the year, with the combined truck and bus share at roughly 53% in FY26 against 59% in FY25, and the truck share falling to about 58% from 65%. Over the same period the wider industry expanded quickly, as total truck and bus sales rose roughly 61%, reaching 8,424 units compared with 5,232 units, while truck sales climbed about 67% to 7,439 units.

Sales volumes reached about 5,263 units, up from 3,402, while revenue went up to Rs60.7 billion, compared with Rs37.5 billion. Net profit rose to Rs6.9 billion from Rs4.6 billion, although margins were slightly lower, with gross margin at 23.1% against 24.3% and net margin at 11.4% against 12.2%, despite higher material and royalty costs. The assessment also points to a balance sheet without debt and to comfortable coverage ratios.