Ghani Value Glass Limited (PSX: GVGL) was incorporated in Pakistan as a public limited company in 1967. The company is engaged in the manufacturing and sale of mirror, laminated glass and tempered glass.
Pattern of Shareholding
As of June 30, 2025, GVGL has a total of 149.942 million shares outstanding which are held by 3420 shareholders. Directors, CEO, their spouse and minor children have the majority stake of 77.296 percent in the company followed by local general public holding 19.11 percent shares.
Joint stock companies account for 1.61 percent shares of GVGL.
The remaining shares are held by other categories of shareholders.
Historical Performance (2021-25)
GVGL’s topline rode an upward trajectory over the period under consideration, however, its bottomline slid twice i.e. in 2020 and 2023. The company’s margins which steeply fell in 2020 posted a significant rebound in 2021. In 2022, gross and operating margins of GVGL continued to look up while net margin slightly ticked down.
In 2023, all the margins plunged. In 2024, GVGL’s margins strengthened while in 2025, gross and operating margins posted a marginal decline while net margin slightly ticked up. The detailed performance review of the period under consideration is given below.
GVGL recorded 11.66 percent topline growth in 2020. This translated into net sales of Rs. 1639.60 million in 2020. COVID-related lockdown and halted economic activity resulted in reduced capacity utilization in 2020 which resulted in under absorption of fixed cost.
Gross profit leveled down by 5.85 percent in 2020 with GP margin sliding down to 28.87 percent. Distribution expense multiplied by 29 percent in 2020 due to higher salaries of sales force and sales promotion expense incurred during the year.
Administrative expense surged by 19.53 percent in 2020 due to higher payroll expense as the company increased its headcount to 332 employees. 139.37 percent higher other expense incurred in 2020 was the result of hefty donations granted during the year coupled with increased provisioning for WPPF.
Other income declined by 29.22 percent in 2020 due to reduced scrap sales during the year. Operating profit weakened by 32.76 percent in 2020 with OP margin falling down to 14 percent. With no external borrowings, there was no finance cost. Net profit dropped by 34.26 percent to clock in at Rs.230.18 million in 2020 with EPS of Rs.4.25 and NP margin of 14 percent.
In 2021, GVGL’s topline improved by 56 percent over the last year to clock in at Rs.2557.94 million. Economic recovery resulted in demand development which led to increased capacity utilization in mirror glass and laminated glass segments in 2021. However, automotive glass production dropped from 1782 units in 2020 to 878 units in 2021.
Increased demand enabled the company to share the cost burden with customers which resulted in 75 percent higher gross profit recorded by GVGL in 2021 with GP margin climbing up to 32.39 percent from 28.87 percent in the previous year. Distribution expense escalated by 51.26 percent in 2021 due to higher salaries of sales force as well as increased freight & handling charges incurred during the year.
Administrative expense also spiked by 40.48 percent in 2021 due to higher payroll expense and greater provisioning booked for ECL during the year. Number of employees increased to 371 in 2021. Other expense declined by 45.18 percent in 2021 which was completely wiped off by 96.68 percent stronger other income recorded during the year.
The growth in other income was due to higher scrap sales, profit on saving accounts and rental income. GVGL registered 129.57 percent higher operating profit in 2021 with OP margin jumping up to 20.59 percent from 14 percent in 2020. With no external borrowings, there was no finance cost. Net profit grew by 156.13 percent in 2021 with EPS of Rs.9.15 and NP margin of 23 percent.
GVGL’s net sales strengthened by 33.36 percent to clock in at Rs.3411.37 million in 2022. This was due to increased sales volume as well as upward price revision.
Increased export sales to new destination such as London, Jordan and South Africa also buttressed the topline in 2022. These factors greatly offset the impact of high cost of raw materials, Pak Rupee depreciation and reversal of fuel and electricity subsidies and resulted in 54 percent higher gross profit and GP margin attaining its maximum level of 37.41 percent in 2022.
Distribution expense slid by 0.23 percent in 2022 due to considerably lower salaries of sales force which offset the impact of higher freight, handling and forwarding charges incurred during the year. Administrative expense soared by 23.83 percent in 2022 due to higher payroll expense on account of inflationary pressure and workforce enhancement to 432 employees in 2022. Other expense mounted by 114.25 percent in 2022 due to higher profit related provisioning done during the year.
Other income shrank by 9.96 percent in 2022 due to lower profit on saving accounts as well as lesser rental income received from Ghani Glass Limited. Operating profit augmented by 66.58 percent in 2022 with OP margin attaining its highest level of 25.71 percent. Net profit grew by 28.21 percent in 2022 to clock in at Rs.755.87 million with EPS of Rs.5.04 and NP margin of 22.16 percent.
In 2023, GVGL recorded 12.18 percent year-on-year topline growth. This resulted in net sales of Rs.3826.84 million. Except for tempered glass, the capacity utilization of mirror glass and automotive glass fell during the year owing to depressed demand.
High cost of raw materials, Pak Rupee depreciation, elevated energy tariff and Pak Rupee depreciation resulted in 16.82 percent spike in cost of sales in 2023. This translated into a paltry 4.41 percent uptick in gross profit in 2023 with GP margin falling down to 34.82 percent. 52.87 percent higher distribution expense incurred in 2023 was due to higher freight, handling and forwarding charges and increased sales promotion expense.
Administrative expense also escalated by 22.26 percent in 2023 primarily due to higher payroll expense on account of inflationary pressure and workforce enrichment to 504 employees. Other expense declined by 4.60 percent in 2023 due to high-base effect as the company incurred loss on disposal of operating fixed assets in the previous year.
Other income magnified by 111.94 percent in 2023 on account of higher scrap sales, rental income and exchange gain. GVGL’s operating profit inched up by 2.15 percent in 2023 with OP margin sliding to 23.41 percent. Net profit declined by 31.82 percent to clock in at Rs.515.33 million in 2023 with EPS of Rs.3.44 and NP margin of 13.47 percent.
In 2024, GVGL recorded 29 percent enhancement in its net sales which clocked in at Rs.4973.52 million. Both local and export revenue improved during the year.
Among the product categories, the greatest contribution to the sales mix was provided by mirror glass followed by tempered & non-tempered glass, frosted glass and laminated glass.
Majority of the revenue was recognized from the local market followed by South Africa, Afghanistan, Kuwait and Ajman. Cost of sales grew by 24.88 percent in 2024 due to high cost of raw materials, elevated energy tariff, soaring level of inflation and Pak Rupee depreciation.
Gross profit recorded 39.48 percent growth in 2024 with GP margin jumping up to 37.37 percent. This was on the back of improved sales volume, expansion into new geographical markets and Pak Rupee depreciation which increased the margin on export sales.
Distribution and administrative expenses spiked by 72.40 percent and 48.33 percent respectively in 2024 due to inflationary pressure and enhanced operations which pushed up payroll expense and freight charges. Other expense surged by 53.74 percent in 2024 due to higher provisioning done for WWF and WPPF as well as impairment loss recorded during the year.
Other income magnified by 101.66 percent in 2024 primarily on account of reimbursement of shared expenses (for the use of combined office space with Ghani Glass Limited), scrap sales and exchange gain. Other expense was conveniently offset by other income in 2024. The company booked 80.65 percent higher allowance for ECL in 2024.
Operating profit enriched by 38.13 percent in 2024 with OP margin mounting to 24.88. After accounting for taxation, GVGL’s net profit for 2024 stood at Rs.897.996 million up 74.26 percent year-on-year. EPS stood at Rs.5.99 while NP margin was recorded at 18 percent in 2024.
GVGL’s net sales multiplied by 19 percent to clock in at Rs.5918.88 million in 2025. This came on the back of tremendous rise in local sales during the year while export sales drastically fell in 2025.
During the year, the company didn’t make any export sales to the UK, Afghanistan, Ajman and Ethiopia. The sales to other export destinations also radically fell. Appreciation in the value of local currency also squeezed the value of export sales in Rupee terms.
Cost of sales surged by 20 percent due to lower capacity utilization which inflated the fixed cost per unit. Gross profit grew by 17.35 percent in absolute terms while GP margin ticked down to 36.85 percent in 2025. Reduced export sales resulted in 7.34 percent downtick in distribution expense in 2025.
Conversely, administrative expense surged by 12.61 percent in 2025 due to higher payroll expense as the company expanded its workforce from 606 employees in 2024 to 645 employees in 2025. This was due to the fact that the company installed a new screen printing glass project during the year to diversify its sales mix. 10.73 percent escalation in other expense in 2025 came on the back of higher provisioning done for WWF and WPPF as well as exchange loss incurred during the year.
Other income dipped by 8.22 percent as no exchange gain was recognized in 2025. Allowance for ECL mounted by 70.85 percent in 2025. GVGL recorded 17 percent stronger operating profit in 2025 with OP margin slightly dipping to 24.47 percent.
The company continued its legacy of no external borrowings, resulting in no finance cost. Net profit enlarged by 20.78 percent to clock in at Rs.1084.64 million in 2025. This culminated into EPS of Rs.7.23 and NP margin of 18.33 percent in 2025.
Recent Performance (9MFY26)
During the nine-month period of the ongoing fiscal year, GVGL posted 10.86 percent year-on-year growth in its topline which clocked in at Rs.5011.12 million. The improvement in macroeconomic indicators led to the improvement in the indigenous demand.
The resurgence of automobile industry might also have contributed to increased demand. Moreover, diversification of product line is the other reason which led to a stronger topline 9MFY26. Cost of sales surged by 12.67 percent in 9MFY26 due to higher energy cost. This resulted in 7.79 percent stronger gross profit in 9MFY26.
However, GP margin slid from 37 percent in 9MFY25 to 36 percent in 9MFY26. This is due to declining contribution of export sales in the overall sales mix. Distribution expense mounted by 45.49 percent in 9MFY26 due to greater local demand.
Administrative expense also ticked up by 1.34 percent in 9MFY26 due to expansion of operations through the installation of screen printing glass facility. Other expense ticked up by 0.75 percent in 9MFY26 likely due to exchange loss which was offset by lower provisioning done for WWF and WPPF.
However, it was completely offset by 22.88 percent stronger other income recorded in 9MFY26. This might be the result of higher scrap sales. GVGL recorded 10.31 percent stronger operating profit in 9MFY26 with OP margin staying intact at 25 percent. With no external borrowings, there was no finance cost in 9MFY26.
Net profit tumbled by 10.25 percent to clock in at Rs.773.277 million in 9MFY26. This translated into EPS of Rs.5.16 in 9MFY26 versus EPS of Rs.5.75 recorded in 9MFY25. NP margin was recorded at 15.43 percent in 9MFY26 versus NP margin of 19 percent recorded in 9MFY25.
Future Outlook
The improvement in macroeconomic indicators of-late greatly improved the demand of GVGL products. Stronger foothold in export market and the adoption of cost optimization measures also supported the financial performance lately.
However, the recent spike in energy prices due to Middle East war will inflate the cost of production for the energy intensive businesses like GVGL. This will take a heavy toll on the demand of its products in the local market and its competiveness in the export market.
On the positive front, the commissioning of screen printing glass facility and the anticipated new project of bullet proof glasses for armored vehicles will add depth to the company’s sales mix and will aid its financial performance.