⚡ Flash Summary

Ghandhara Tyre & Rubber Company Limited (GTYR) held a corporate briefing session in October 2025. The company’s financials for 2025 show a decline in key metrics compared to 2024. Net sales decreased by 13% to PKR 17.8 billion, and gross profit fell by 31% to PKR 2.272 billion. This resulted in a net loss after tax of PKR 366 million compared to a profit of PKR 229 million in the previous year.

📌 Key Takeaways

• 📉 Net sales decreased by 13% from PKR 20.539 billion in 2024 to PKR 17.8 billion in 2025.
• 📉 Gross profit declined by 31% from PKR 3.278 billion to PKR 2.272 billion.
• 📉 Gross margin decreased from 16.0% to 12.8%.
• 📈 Finance costs increased by 24% from PKR 1.680 billion to PKR 1.351 billion.
• 📉 The company reported a loss before tax of PKR 150 million, a 130% decrease compared to a profit of PKR 496 million in 2024.
• 📉 Loss after tax was PKR 366 million, a 260% decrease compared to a profit of PKR 229 million in 2024.
• 📉 EBITDA decreased by 37% from PKR 2.701 billion to PKR 1.701 billion.
• 🚫 No cash dividend was distributed in 2025, compared to 18.7% in 2024.
• 📈 The company maintains a long-term credit rating of A+ and a short-term rating of A1 with a stable outlook from PACRA.
• 🚜 Key products include tyres for tractors, motorcycles, passenger cars, SUVs, light trucks, trucks/buses, off-the-road vehicles and rickshaws.
• 🤝 Key customers include Honda, Toyota, Suzuki, Hyundai, Kia, Hino, ISUZU, Dewan Farooque Motors, New Holland, and Massey Ferguson.
• ⚠️ Key challenges in 2024-25 include historically high interest rates, economic slowdown, and lower farm tyre sales.
• ☀️ Key initiatives include a 7-year technical services agreement with Shandong Huasheng Rubber Co. Ltd. and a solar energy agreement with KE for up to 2MW.
• 🌱 Future outlook focuses on the revival of economic activity and government initiatives.

🎯 Investment Thesis

Given the poor financial performance, declining profitability, and increased risks, a SELL recommendation is warranted. The price target should be revised downwards to reflect the current challenges and uncertainties. The time horizon is medium-term, expecting potential recovery contingent on economic improvements and successful execution of company initiatives.