Sazgar Engineering Works Limited (PSX: SAZEW) has reported its highest-ever annual profit after tax of Rs. 23.6 billion for fiscal year 2026, marking a 44% increase compared with the previous year.
According to a result review by Arif Habib Limited (AHL), the company also posted its strongest-ever quarterly profit in the fourth quarter, supported by a significant increase in vehicle sales.
Sazgar Engineering recorded a profit after tax of Rs. 8.7 billion in the fourth quarter of FY26, up 151% year-on-year (YoY) and 36% quarter-on-quarter (QoQ).
The company declared a cash dividend of Rs. 20 per share for the fourth quarter, taking its total dividend payout for FY26 to Rs. 70 per share.
The company’s annual revenue increased 76% to Rs. 191.7 billion, mainly driven by stronger four-wheeler sales.
Four-wheeler sales, including vehicles from brands such as Haval and GWM, increased 77% to 19,179 units during FY26.
Fourth-quarter revenue also jumped 181% YoY and 62% QoQ to Rs. 76.5 billion. Four-wheeler volumes reached 6,549 units, more than double the level recorded in the same quarter last year.
The company sold approximately 1,370 Tank vehicles during the fourth quarter.
Despite the strong growth in sales and profitability, Sazgar Engineering’s gross margin declined to 24.2% in FY26, compared with 29.1% in the previous year.
Fourth-quarter gross margin stood at 22.3%, down from 25.1% in the same period last year.
AHL attributed the decline primarily to a change in product mix and the impact of rupee depreciation.
Distribution expenses rose 78% YoY to Rs. 6.2 billion during FY26.
Fourth-quarter distribution expenses increased 124%, mainly due to deliveries of the newly launched Tank 500.
Meanwhile, other income increased 96% annually to Rs. 2.7 billion. Fourth-quarter other income rose 108% YoY to Rs. 667 million, which AHL attributed to higher deposits.
Sazgar Engineering’s finance costs increased 97% YoY to Rs. 454 million during FY26, primarily due to higher long-term financing.
In the fourth quarter, finance costs reached Rs. 153 million, increasing 5.3 times year-on-year and 50% quarter-on-quarter.
The company’s effective tax rate stood at 38.7% during the fourth quarter, compared with 38.9% in the same period last year.
The record earnings highlight the strong performance of Sazgar Engineering’s automotive business during FY26, supported by higher four-wheeler volumes and growing demand for its Haval, GWM and Tank vehicle offerings.
