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. The content in this publication is expensive to produce. But unlike other journalistic outfits, business publications have to cover the very organizations that directly give them advertisements. Hence, this large source of revenue, which is the lifeblood of other media houses, is severely compromised on account of Profit’s no-compromise policy when it comes to our reporting. No wonder, Profit has lost multiple ad deals, worth tens of millions of rupees, due to stories that held big businesses to account. Hence, for our work to continue unfettered, it must be supported by discerning readers who know the value of quality business journalism, not just for the economy but for the society as a whole.To read the full article, subscribe and support independent business journalism in Pakistan
