Agriauto Industries Limited Posts Strong Turnaround as Auto Sector Gains Momentum

PAKISTAN

Agriauto Industries Limited (AGIL) has reported a strong financial turnaround for the six months ended December 31, 2025, driven by robust growth in Pakistan’s automotive sector and improving macroeconomic conditions.

In its communication to the Pakistan Stock Exchange (PSX), the company noted that Pakistan’s economy remains well positioned to sustain growth in FY2026, supported by macroeconomic stability, easing inflation, and improved fiscal management. Inflation is projected to remain within the 5–7% range over the medium term, while stable exchange rates and healthy remittance inflows are expected to cushion external pressures.

The automotive industry witnessed significant expansion during the period, aided by a sharp decline in interest rates from 22% in January 2024 to 10.5% by December 2025, removal of import curbs, exchange rate stability, and supportive policy measures for local manufacturing.

Financial Performance
For the six-month period ended December 31, 2025, consolidated turnover surged approximately 80% to Rs. 8.4 billion, compared to Rs. 4.7 billion in the same period last year. Unconsolidated turnover rose 68% to Rs. 5.3 billion.

The company posted a consolidated profit after tax of Rs. 530 million, marking a turnaround from a loss of Rs. 56 million in the same period last year. On an unconsolidated basis, profit after tax stood at Rs. 452 million, compared to Rs. 176 million previously. Consolidated earnings per share reached Rs. 14.67.

Segment-wise, passenger car and two-wheeler sales increased by 51% and 33%, respectively, while tractor sales declined by 20% compared to the corresponding period last year.

Looking ahead, the company expects a measured recovery in the automotive sector under continued macroeconomic stabilization and anticipates that the upcoming Auto Policy 2026–31 will encourage further localization, fresh investment, and sustainable medium-term growth.

Agriauto Industries Limited is one of Pakistan’s leading manufacturers of automotive components, specializing in the production of shock absorbers, struts, and other precision-engineered parts for passenger cars, motorcycles, tractors, and light commercial vehicles. The company supplies to major original equipment manufacturers (OEMs) in Pakistan and operates with a focus on quality, localization, and technological advancement. Through its subsidiary, Agriauto Stamping Company (Pvt.) Limited, the group also manufactures high-tensile sheet metal components, supporting the domestic auto vendor industry.

ER News Desk

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