Lahore: The Directors of Sazgar Engineering Works Limited presented the company's 35th Annual Report, dated September 4, 2026, detailing significant developments and financial performance for the fiscal year ending June 30, 2026. The report highlights a strategic shift away from non-core businesses and robust growth in the company's core automotive segment.
During the past fiscal year, Sazgar Engineering made the strategic decision to discontinue its Home Appliances business effective from September 1, 2025. This move followed a comprehensive review of financial performance, market dynamics, and long-term strategic objectives. The decision allows the company to focus resources on its core automotive and automotive parts segments, which have shown more profitability. All regulatory requirements and contractual obligations relating to this discontinuation were fulfilled without disruption to stakeholders.
Sazgar's product portfolio remains diversified within the automotive sector, with a strong emphasis on assembling, importing, and marketing vehicles under Chinese automotive brands such as BAIC, GWM (HAVAL, TANK, ORA), and its own brand SAZGAR for three-wheelers. The company also continues to explore export opportunities for its three-wheelers in selected international markets, including Japan.
According to information available from the Pakistan Stock Exchange (PSX), the company reported a significant increase in its financial performance. Net sales surged by 76.38% to PKR 191.72 billion, while profit after tax rose by 44.49% to PKR 23.60 billion. This impressive growth was driven by increased sales volumes of GWM-HAVAL and GWM-Tank-500 branded vehicles. Earnings per share also rose from PKR 270.26 to PKR 390.51, indicating continued shareholder value creation.
The company completed its existing expansion plan, which included the installation of new assembly lines, a solar system, and warehousing facilities, except for the paint shop, at a cost of PKR 6.50 billion. A new expansion plan was approved with an estimated budget of PKR 22.00 billion, aimed at setting up a fully automatic paint shop and increasing production capacity to 54,000 units per annum.
Sazgar's strategic focus on hybrid, plug-in hybrid, and electric vehicles aligns with the government's policy emphasis on New Energy Vehicles. The company rolled out CKD models of the TANK-500, marking an important strategic development expected to enhance revenue and profitability.
Pakistan's economy showed recovery in FY 2025-26, with GDP growth improving to 3.70%. The manufacturing sector grew significantly by 6.61%, enhancing confidence in the auto sector, which saw an overall growth of 30.23%. However, challenges such as inflationary pressures, high fuel prices, and restricted bank financing persisted.
In conclusion, Sazgar Engineering's strategic decisions and robust financial performance underline its commitment to focusing on core strengths and aligning with market demands, setting the stage for sustained growth in the coming years.