Gandhara's turn towards China begins to bear fruit

After several lean years and a strategic reset, Ghandhara Automobiles Limited (GAL) is stepping back into the limelight of Pakistan’s auto industry. The company, long associated with Japanese marques through its previous incarnation as Ghandhara Nissan, has retooled its portfolio around Chinese partners in both passenger and commercial vehicles. Early evidence suggests the pivot is paying off: earnings are improving, launches are landing in receptive market niches, and the commercial-vehicle franchise is riding a cyclical upturn. At the same time, a premium pick‑up – priced to undercut the segment incumbent by a wide margin – has given the storied Karachi assembler something it has not enjoyed in years: momentum.

The numbers tell the story of a company shifting out of neutral. From a modest revenue base of Rs9.4 billion in FY24, GAL’s top line is on course to almost triple to roughly Rs27.0 billion in FY25, with another sizeable step‑up to around Rs43.0 billion pencilled in for FY26. The earnings line has turned decisively as well: profit after tax, which stood at Rs365 million in FY24, is tracking in the ballpark of Rs3.8 billion this year and above Rs5.5 billion next year, helped by both volume growth and a stronger product mix. Gross margin expansion – from 12.0% in FY24 to above 20% in FY25–26 – underlines the operational shift behind the headline figures.