Millat Tractors Limited, a leading player in the automotive sector, witnessed a contraction in its bottom line for the first quarter of the 2025 financial year, as higher costs and lower sales volumes took their toll.
The company announced on Tuesday an unaudited profit after tax of Rs. 513.59 million for the quarter ended September 30, 2025. This marks a significant decline of over 17% from the Rs. 622.33 million net profit it posted in the same period last year.
The drop in profitability stemmed from a dual squeeze: a revenue contraction and rising operational expenses. The company’s revenue for the quarter fell to Rs. 7.55 billion, down from Rs. 7.99 billion in the prior year. At the same time, administrative expenses crept upward, further pressuring the operating profit, which settled at Rs. 1.26 billion compared to last year’s Rs. 1.61 billion.
A silver lining was the reduction in finance costs, which decreased to Rs. 471.39 million from Rs. 628.06 million, providing some relief to the pre-tax profit of Rs. 789.67 million.
In a brighter segment of the report, the consolidated results—which include the company’s subsidiaries—showed a more robust picture. The group reported a net profit of Rs. 613.46 million, translating to an earnings per share of Rs. 3.07, an improvement from the Rs. 2.30 EPS reported a year ago. This suggests that the diversified operations within the group are performing well and helping to offset challenges in the core tractor business.
The results indicate a challenging quarter for Millat Tractors’ core operations, likely reflecting broader economic pressures affecting the agricultural and manufacturing sectors. Investors will be watching for the company’s strategy to rebound in the coming quarters.
