Lahore: Ghani Global Holdings Limited (GGL) has released its annual report for the year ending June 30, 2026, revealing a notable downturn in financial performance despite a backdrop of moderate economic recovery in Pakistan. The report, dated October 7, 2026, highlights the challenges faced by the company in a year marked by volatile economic conditions both domestically and internationally.
According to the report, Pakistan's economy showed signs of recovery during FY2026, with real GDP growth at 3.70%, an improvement from the previous year's 3.18%. The industrial sector, a key driver of this growth, expanded by 3.51%, supported by a substantial 6.5% rise in Large-Scale Manufacturing. However, inflationary pressures and external risks, including geopolitical tensions, posed significant challenges. The State Bank of Pakistan maintained a cautious monetary policy, with a policy rate of 11.5% to mitigate these risks.
Ghani Global Holdings Limited, primarily managing investments in its subsidiary and associated companies, reported gross sales of PKR 51.442 million for the year, a significant decrease of 55.18% from the previous year's PKR 114.784 million. Net sales also declined by 54.83% to PKR 43.206 million. Despite this downturn in sales, the company managed to increase its gross profit to PKR 2.968 million, a significant improvement from the previous year's PKR 1.217 million, due to better gross margins and reduced direct costs.
Administrative expenses were trimmed to PKR 5.999 million from PKR 6.936 million, yet other expenses saw a substantial increase to PKR 11.558 million, largely due to costs associated with audit activities related to the Merger/De-Merger and the write-off of receivable balances.
The company's other income plummeted to PKR 51.868 million from PKR 201.265 million in the previous year, mainly due to the absence of dividend income from its subsidiary. This decline in other income severely impacted the overall profitability of GGL. Consequently, profit before taxation and minimum tax levies was recorded at PKR 31.998 million, a sharp fall from PKR 182.036 million in the previous year. After accounting for taxation of PKR 9.594 million, the profit after taxation stood at a modest PKR 22.404 million, compared to PKR 149.190 million in the preceding year. Earnings per share (EPS) correspondingly fell to PKR 0.063 from PKR 0.421.
According to information available from the Pakistan Stock Exchange (PSX), these figures underscore a significant move in the company's financial standings, reflecting the broader economic challenges and internal strategic adjustments faced during the fiscal year.
The report provides a comprehensive overview of the hurdles encountered by GGL, including economic instability stemming from international conflicts and rising global oil prices. These factors have impacted production costs and the import bill, further complicating the company's financial landscape.
As Pakistan enters FY2027 with improved macroeconomic conditions, Ghani Global Holdings Limited remains focused on sustaining fiscal discipline and enhancing its investment strategies to navigate the volatile economic landscape. The company's future outlook emphasizes the importance of continued policy reforms and strategic adjustments to foster sustainable growth in the coming years.