Millat Tractors plans 2-for-1 share split, proposes face value cut to Rs5

Millat Tractors Limited has proposed a sub-division of its shares, reducing the face value from Rs10 to Rs5, subject to shareholder approval at an Extraordinary General Meeting (EOGM).

The proposal was approved by the Board of Directors in its meeting held on April 28, 2026, in accordance with Sections 96 and 131 of the Securities Act, 2015 and Clause 5.6.1 of the PSX Regulations.

Under the plan, shares will be split in a 2-for-1 ratio, with shareholders receiving two shares of Rs5 each for every one share of Rs10 held. The company’s existing subscribed and paid-up capital of 199,515,948 ordinary shares will increase to 399,031,896 ordinary shares following the sub-division. 

The date of determination for entitlement will be announced after approval at the EOGM.

To implement the change, the company will amend Clause V of its Memorandum of Association to reflect the revised share structure.

The company stated that the move is aimed at enhancing shareholder value, improving liquidity and broadening investor participation by increasing the number of tradable shares in the market.

The EOGM is scheduled to be held on June 5, 2026 at 12:00 pm at the company’s registered office located at 8.8 km Sheikhupura Road, Lahore, with participation also available through video link.

The share transfer books of the company will remain closed from May 30, 2026, to June 5, 2026, both days inclusive. 

The company said formal notice of the EOGM will be issued separately through PUCARS.

Financial performance

Millat Tractors also reported consolidated net profit after tax of Rs3.1 billion for the third quarter of FY26, translating into earnings per share of Rs15.32. The result reflects an increase of 2.2 times year-on-year and 27% quarter-on-quarter, supported by higher margins.

Net sales rose to Rs17 billion during the quarter, up 37% compared to the same period last year, while volumetric growth remained at 7%, indicating a shift towards higher horsepower variants.

Gross margins stood at 38%, increasing by 9.3 percentage points year-on-year, supported by a change in sales mix towards higher-margin products.

Distribution costs increased by 15% to Rs508 million, in line with higher sales volumes. Finance costs declined by 30% to Rs291 million, reflecting lower interest rates and reduced reliance on short-term borrowing.

The company reported an effective tax rate of 37%, compared to 39% in the same period last year.