Farm income slowdown hits Ghandhara Tyre sales

Ghandhara Tyre & Rubber Company Ltd (PSX: GTYR) – rebranded in 2021 from General Tyre – slid into losses in FY2025 as the farm economy’s slowdown pinched tractor-tyre demand and pricing power. Management says the trough is cyclical and fixable: a pivot toward the replacement market, selective export pushes, and a refreshed product pipeline are intended to rebuild volumes through 2026, even if rural purchasing power takes time to heal.

GTYR’s FY2025 consolidated picture is stark. Net sales fell 13% year-on-year to Rs17.8 billion (FY2024: Rs20.5 billion). Gross profit contracted 31% to Rs2.3 billion (FY2024: Rs3.3 billion) as the gross margin slipped to 13% from 16%. Operating profit nearly halved, and finance costs – while lower – could not cushion the blow from weaker volumes and a tougher mix. The company swung from a Rs229 million profit after tax in FY2024 to a Rs366 million loss in FY2025. The dividend was suspended.