LAHORE, Oct 27(Focus Pakistan) — The Sazgar quarterly results 2026 show profit for July-September, the first three months of fiscal 2027, falling to Rs4.04 billion from Rs4.42 billion a year earlier. Directors approved the figures on Monday and filed them with the Pakistan Stock Exchange. Earnings per share slipped to Rs66.77 from Rs73.07.
Sazgar’s quarterly results put profit for July-September, the first three months of fiscal 2027, at Rs4.04 billion. Last year’s first quarter brought in Rs4.42 billion. Directors signed off on the numbers on Monday afternoon and filed them with the Pakistan Stock Exchange; earnings per share slipped to Rs66.77 from Rs73.07.
The board also cut the first-quarter dividend to Rs5 a share. A year earlier, it declared Rs15 per share for the corresponding quarter.
Sales grew to Rs41.71 billion. The cost of the vehicles and parts Sazgar sold grew faster, by 31%, so gross profit ended almost exactly where it stood last year, at Rs8.51 billion. Gross margin dropped nearly five percentage points, to 20.4%.
Higher selling expenses and financing costs added to the pressure. Sazgar spent Rs1.66 billion on distribution and marketing, up 72%. Its finance bill rose more than fourfold, to Rs334 million from Rs79 million. Other operating expenses moved the other way, falling about 10% to Rs487 million. Operating profit came in at Rs6.15 billion, almost 10% lower.
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Other income, mainly profit on bank deposits, rose 22% to Rs629 million and softened the blow.
The company set Nov 8 as the shareholder entitlement date for the interim dividend and announced a share transfer book closure from Nov 9 through Nov 11.
In a separate disclosure, the board approved new monthly pay, net of tax, for Chief Executive Officer Mian Asad Hameed and two executive directors, effective July 1.
Hameed will receive Rs7 million a month. The executive director who heads the three-wheeler and automotive parts division will get Rs4 million, and the executive director in charge of the car division Rs2.5 million.
The filing did not state the executives’ previous pay.
Sazgar quarterly results: cash flow weakens
Sazgar stepped up investment during the quarter. Spending on property, plant and equipment hit Rs3.25 billion, more than triple the Rs966 million it laid out a year earlier. Depreciation came to Rs281 million, roughly three times last year’s charge.
Sazgar also raised Rs2.59 billion in long-term financing during the quarter. Its diminishing musharakah balance climbed to Rs7.45 billion from Rs5.19 billion at the end of June.
Net cash from operating activities shrank to Rs4.15 billion, from Rs15.33 billion a year earlier. The biggest swing came from trade and other payables. They dropped Rs1.7 billion this quarter; in the same months last year, they had jumped by Rs14.5 billion.
By Sept 30, the company had Rs18.04 billion in cash and at the bank. It had Rs13.98 billion in June and Rs31.34 billion a year earlier.
Fiscal 2026 had been Sazgar’s best year on record, with profit of Rs23.6 billion and revenue of Rs191.7 billion. Even so, margins started to thin out during that year, with gross margin sliding to 24.2% from 29.1%.
Unit sales tell a mixed story. In August and September combined, Sazgar sold 2,474 four-wheelers, it told the exchange earlier this month, almost exactly the 2,478 it sold in the same two months of 2025. Three-wheeler sales rose about 32%, to 5,173.
Sazgar sold 852 more four-wheelers than it produced during August and September, suggesting deliveries drew partly on previously available inventory. The company did not explain the gap.
Sazgar assembles Haval models in partnership with China’s Great Wall Motor. Its filing did not explain the decline in margins.
The numbers leave the company with a clear test for the rest of the year: holding on to sales growth while winning back the margins that powered its record 2026 profit.
