GTYR Faces Challenging Year as Farm Tyre Demand and Exports Decline
KARACHI: Ghandhara Tyre & Rubber Company Limited (PSX: GTYR) posted a challenging financial performance in FY2025, reporting a net loss of Rs366.1 million as declining farm tyre sales, weaker exports, and higher production costs weighed on profitability. The company’s net sales fell 13.3% year-on-year to Rs17.8 billion, while gross margins dropped due to rising raw material, energy, and labor costs.
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During the first nine months of FY2026, GTYR continued to face pressure, recording a net loss of Rs343.6 million as export sales plunged sharply and production was disrupted by supply chain challenges linked to regional tensions. However, passenger car, truck, bus, and motorcycle tyre segments showed signs of improvement amid easing inflation and a gradual economic recovery.
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Looking ahead, the company expects demand to improve through new SUV tyre offerings, increased exports, government support for the agriculture sector, and anti-smuggling measures. GTYR also expects its recently commissioned solar power project and ongoing cost optimization efforts to reduce operating expenses and strengthen profitability in the coming years.
