Sazgar’s poised to profit from Pakistanis’ new taste for SUVs

Sazgar Engineering Works Limited (PSX: SAZEW) has put another powerful year on the odometer. According to a detailed brokerage update released on 28 July 2025, the Lahore‑based assembler is heading for triple‑digit top‑line growth on the back of a sports‑utility‑vehicle boom that shows little sign of abating. Analysts at Arif Habib Research expect Sazgar’s revenue to surge to Rs133.4 billion in FY26, up from an estimated Rs90 billion in the year just ended, before climbing a further 43% to Rs191.6 bn in FY27 as incremental capacity for new Chinese models hits the market.

The earnings picture is equally arresting, albeit tempered by an inevitable margin correction once government incentives expire. The brokerage now projects earnings per share of Rs367 for FY26 — implying a hefty net profit of Rs22.2 bn and a sector‑beating net margin of 16.6 pc. A year later, as the 2021‑26 Auto Policy concessions on customs duty and sales tax lapse, that net margin is forecast to settle at roughly 7.6 pc, still solid for an assembler that was loss‑making barely four years ago.