Ghandhara Tyre & Rubber Company limited (PSX: GTYR) was incorporated in Pakistan as a private limited company in 1963 and was subsequently converted into public limited company. The principal activity of the company is the manufacturing and trading of tyres and tubes for automobiles and motorcycles.
Pattern of Shareholding
As of June 30, 2025, GTYR has a total of 121.933 million shares outstanding which are held by 5466 shareholders. Associated companies, undertakings and related parties which include Bibojee Services (Private) Limited and Pakistan Kuwait Investment Company (Private) Limited, collectively hold 57.79 percent shares of the company. These are followed by local general public having 26.13 percent stake in the company. NIT & ICP accounts for 5.02 percent shares of GTYR while banks, DFIs and NBFIs hold 2.24 percent shares. Around 2.15 percent of the company’s shares are held by its Directors, CEO, and their spouse and minor children, 1.76 percent by Modarabas & Mutual Funds and 1.15 percent by Insurance companies. The remaining shares are held by other categories of shareholders.
Historical Performance (2021-25)
Over the period under consideration, GTYR’s topline posted year-on-year rise in 2021, 2022 and 2024. Its bottomline posted growth only in 2021 and 2024. In 2023 and 2025, the company also registered net losses. GTYR’s margins which nosedived until 2020 rebounded in 2021. In 2022, the margins recorded a downtick. In 2023, gross margin strengthened, operating margin almost stayed afloat and net margin entered negative territory. This was followed by a rebound in all the margins in 2024. In 2025, GTYR’s margins deteriorated. The detailed performance review of the period under consideration is given below.
GTYR’s net sales greatly revived in 2021 to clock in at Rs.13,923.52 million, up 58.34 percent year-on-year. Robust sales was the result of increased focus on replacement market sales, lesser availability of smuggled tyres, 56 percent higher export sales and demand growth in farm and passenger car tyres in 2021. Better sales mix, improved export sales and the company’s ability to increase its prices culminated into 100.61 percent higher gross profit recorded in 2021. GP margin climbed up to 15.11 percent in 2021 from 11.92 percent in the previous year. 43.72 percent elevated distribution expense incurred during the year was the consequence of higher payroll expense, rigorous advertising and promotion drives undertaken during the year as well as higher freight & insurance charges incurred due to improvement in demand. Administrative expense also surged by 14.34 percent in 2021 due to higher payroll expense as well as increased legal & professional charges incurred during the year. In order to cope up with increased production and sales, the company expanded its workforce to 1133 employees in 2021. Other income strengthened by 166.64 percent in 2021 due to higher scrap sales, exchange gain, re-measurement gain on GIDC liability and gain on termination of lease. Other expense also escalated by 276.80 percent in 2021 due to higher profit related provisioning and generous donations given out during the year. GTYR’s operating profit enhanced by 219.85 percent in 2021 with OP margin picking up to 9.30 percent from 4.61 percent in 2020. Finance cost slid by 40.62 percent in 2021 due to monetary easing. The company posted net profit of Rs.575.656 million in 2021 with EPS of Rs.4.7 and NP margin of 4.11 percent. This was against the net loss of Rs.332.091 million and loss per share of Rs.2.72 posted in 2020.
In 2022, GTYR’s posted 33.5 percent higher net sales to the tune of Rs.18,588.299 million. Not only did the replacement market sales showed improvement in 2022, OEM sales pertaining to truck, bus, light truck and passenger cars also improved over the last year. Global commodity super cycle, higher freight charges due to elevated fuel prices and shortage of containers, Pak Rupee depreciation, usage of LPG due to low availability of natural gas and overall high indigenous inflation resulted in GP margin falling down to 13.2 percent in 2022. In absolute terms, gross profit increased by 16.58 percent in 2022. Distribution expense escalated by 15.12 percent in 2022 due to higher payroll expense of sales force, increased advertising & promotion budget and elevated freight charges. Administrative expense ticked up by 5.4 percent in 2022 due to slight growth in payroll expense and higher provisioning for ECL booked during the year. GTYR cut down its workforce to 1114 employees in 2022. Other income slid by 28.22 percent in 2022 due to absence of exchange gain, gain on termination of lease and re-measurement gain on GIDC liability. Other expense soared by 155.19 percent in 2022 due to hefty exchange loss on account of Pak Rupee depreciation. GTYR’s operating profit posted a paltry 5.39 percent growth in 2022 with its OP margin falling down to 7.34 percent. Finance cost spiraled by 48.36 percent in 2022 due to higher discount rate and increased working capital financing. GTYR’s net profit sank by 37.82 percent to clock in at Rs.356.065 million in 2022 with EPS of Rs.2.92 and NP margin of 1.92 percent.
After two successive years of topline growth, GTYR’s topline succumbed to economic and political pressure and dropped by 19.2 percent year-on-year to clock in at Rs.15,018.659 million in 2023. Replacement market sales were badly affected due to monsoon rain the 1QFY23 and dumping of smuggled tyres in Pakistan. Sales to OEM were also affected due to restriction on the opening of Letter of Credit due to thin FOREX reserves of the country. GTYR, itself was also affected due to import restrictions which resulted in curtailed capacity utilization of 38.53 percent recorded in 2023 versus capacity utilization of 65.1 percent recorded in the previous year. In absolute terms, gross profit lowered by 6.57 percent in 2023, however, GP margin improved to 15.26 percent due to better sales mix, price increase and enhanced focus on replacement market and export sales. Lower sales volume resulted in 8.93 percent decline in distribution expense in 2023. The company also carried out lesser advertisement and promotion activities in 2023. Lower legal & professional charges and lesser provision for ECL resulted in 6.1 percent lower administrative expense in 2023. Employee headcount was also brought down to 1078 in 2023. 23 percent year-on-year reduction in other income in 2023 was primarily the result of lower scrap sales and a downtick in gain on sale of operating fixed assets. Other expense surged by 78.94 percent in 2023 due to whopping exchange loss incurred during the year. GTYR’s operating profit contracted by 19.48 percent in 2023 with OP margin staying almost intact at 7.32 percent. Finance cost surged by 72.74 percent in 2023 due to unprecedented level of discount rate. The company posted net loss of Rs.167.364 million in 2023 with loss per share of Rs.1.37.
The tables seem to have turned for GTYR as it was able to record staggering 36.75 percent stronger topline to the tune of Rs.20,538.57 million in 2024. This was the result of increased focus on replacement market, strengthening foothold in export market and progressively more diversified OEM portfolio. Better sales mix, higher prices, stability in the value of Pak Rupee off-late and recovery in the sale of tractor tyres resulted in 43 percent higher gross profit recorded in 2024 with GP margin of 15.96 percent. Distribution and administrative expense surged by 29.20 percent and 31.14 percent respectively primarily due to increased payroll expense as well as freight & insurance charges incurred during the year. GTYR expanded its workforce from 1078 employees in 2023 to 1099 employees in 2024. Other income grew by 44.69 percent in 2024 predominantly due to hefty exchange gain. Other expense slid by 91.56 percent during the year as no exchange loss was recorded in 2024. GTYR’s operating profit enhanced by 97.86 percent in 2024 with OP margin clocking in at 10.60 percent. Finance cost surged by 30 percent in 20024 due to elevated discount rate and increased utilization of working capital lines. The company recorded net profit of Rs.229.06 million in 2024 with EPS of Rs.1.88 and NP margin of 1.12 percent.
In 2025, GTYR’s net sales plummeted by 13.34 percent to clock in at Rs.17,799.710 million. This was mainly on account of lower farm tyre sales on the back of lower wheat price which wreaked havoc on the purchasing power of farmers. Export sales dwindled by 21.69 percent to clock in at Rs. 231 million in 2025 due to border tensions and change of distributor in Afghanistan. Passenger car tyre and light truck tyres posted some improvement during the year owing to improved macroeconomic backdrop. Replacement market sales also picked up during the year. High prices of certain raw materials, increase in minimum wage rate and upward revision in gas prices resulted in 30.69 percent thinner gross profit in 2025 with GP margin falling to its 5-year low level of 12.76 percent. Lower sales volume of farm tyres resulted in 6.97 percent drop in distribution expense in 2025. Conversely, administrative expense ticked up by 5.76 percent in 2025 due to increase in payroll expense on account of inflationary pressure. GTYR recorded exchange loss during the year which pushed up its other expense by 45.34 percent. Other income slid by 2.45 percent in 2025 as the company didn’t record exchange gain. Operating profit deteriorated by 45.54 percent in 2025 with OP margin ticking down to 6.65 percent. Finance cost slid by 19.60 percent in 2025 due to monetary easing. GTYR posted net loss of Rs.366.077 million in 2025 with loss per share of Rs.3.0.
Recent Performance (9MFY26)
During the nine-month period of the ongoing fiscal year, GTYR posted 13.11 percent year-on-year downtick in its net sales which clocked in at Rs.12,131.503 million. During the 1HFY26, farm tyre segment underperformed due to poor farm economics. The demand recovered during the 3QFY26; however, the company couldn’t take the optimum benefit of the demand recovery as it conducted a production shutdown during the quarter to manage raw material availability in the wake of Middle East crisis which caused supply chain impediments. Export sales also deteriorated by 76.51 percent during 9MFY26 to clock in at Rs.39 million due to the closure of Pak-Afghan border and regional tesnions. While other segments – passenger cars, truck & bus, OTR and motorcycles – performed well during the period under consideration owing to monetary easing, stronger Pak Rupee and gradual macroeconomic recovery, it couldn’t sustain the gross profit of the company which fell 25.27 percent in 9MFY26. GP margin also descended from 14.11 percent in 9MFY25 to 12.14 percent in 9MFY26 mainly on account of elevated energy cost. Lower sales volume resulted in 1.28 percent diminution in distribution expense in 9MFY26. Conversely, administrative expense ticked up by 6.89 percent during the period owing to inflationary pressure. Operating profit weakened by 43.43 percent in 9MFY26 with OP margin clocking in at 5.20 percent versus 8 percent in 9MFY25. Monetary easing and efficient utilization of financing facilities resulted in 14.61 percent decline in finance cost in 9MFY26. Share of profit from associated companies also mounted by 144.91 percent during the period. On the other hand, hefty revenue tax marred the bottomline in 9MFY26. GTYR recorded net loss of Rs.343.583 million with loss per shares of Rs.2.82 in 9MFY26 versus net profit of Rs.63.786 and EPS of Rs.0.52 posted in 9MFY25.
Future Outlook
GTYR is increasingly diversifying its portfolio by introducing new sizes of tyres for SUV/crossover segments. The company is also striving to increase its export sales in both OEM and RM segments. The introduction of Punjab Tractor Scheme, Kissan card subsidized financing and warehousing receipt programs is also expected to boost local demand. Improved farm economics and flood rehabilitation drives by the government may also buttress demand dynamics in the farm tyre segment.
GTYR is also focusing on cost optimization and raising its operational efficiency. The recently commissioned solar power project will reduce energy cost. The government is also taking steps to curbs the smuggling of tyres. All these factors are expected yield positive results and cast encouraging impact on the profitability and margins of GTYR.
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