PACRA Maintains the Entity Ratings of Ghandhara Automobile Limited

Ghandhara Automobiles Limited (“GAL” or “the Company”) is a listed entity engaged in the distribution and supported assembly of commercial vehicles in Pakistan. Operating under the umbrella of the Bibojee Group of Companies, GAL benefits from diversified group synergies across automobiles, textiles, insurance, construction, and tyres. GAL’s product portfolio remains concentrated in commercial vehicles, where the Company maintains strategic collaborations with Anhui Jianghuai Automobile Co. Ltd. (JAC Motors), China, for light, medium, and heavy-duty trucks. Additionally, brand associations with Dongfeng and Renault Trucks further strengthen its position within the commercial vehicle segment. In the passenger vehicle segment, the phasing out of the Chery Tiggo series last year created a gap in the portfolio; to strategically address this, GAL introduced the JAC T9 Hunter, which has gained a remarkable market acceptability during its launch owing to its attractive features and competitive pricing, thereby reinforcing the Company’s passenger vehicle offering. Governance remains central to GAL’s operations, with an independent Board ensuring transparency, accountability, and strategic oversight, supported by a professional management team that drives operational excellence and sustainable growth. At the industry level, Pakistan’s trucks and buses segment is inherently cyclical and closely aligned with economic activity, logistics demand, and infrastructure development. After steep contractions in FY23 (-41%) and FY24 (-31%), sales volumes rebounded strongly in FY25 (till June 2025) to ~5,232 units, reflecting a robust ~98% YoY increase. This recovery was driven primarily by a notable decline in the policy rate and inflation, which improved financing feasibility and purchasing power. The momentum was further supported by improved liquidity, exchange rate stability, and the easing of supply-side bottlenecks, thus improving consumer confidence. The policy-driven fleet modernization and emission compliance under the NTP-2018 are expected to stimulate demand for modern, fuel-efficient vehicles. According to PAMA data, GAL’s share in the trucks segment stood at ~4% in FY25 (198 units) compared to ~7% (164 units) in FY24, reflecting heightened competition and industry cyclicality. Conversely, the Company has shown remarkable growth in the light commercial vehicle (LCV) category through the JAC X-200, achieving ~13% share (1,274 units) in FY25 versus ~3.1% (727 units) in FY24. Based upon the significant improvement in volumes, the consolidated revenue sharply jumped to ~PKR 34.5bln (FY24: ~PKR 9.4bln). Resultantly, margins showed a considerable improvement at all levels, and the Company’s bottom line demonstrated exceptional growth and recorded at ~PKR 4.1bln (FY24: ~PKR 365mln). Financial risk profile is demonstrated by strong coverages, cashflows. Total debt was reduced to ~PKR 880mln, entirely comprising long-term borrowings with no reliance on short-term debt, resulting in a modest leveraging ratio of ~5.6% (FY24: ~18.1%).
The ratings remain dependent on GAL’s ability to sustain its growth momentum in terms of revenue and profitability. The adequacy of operating cash flows to meet working capital and expansion needs will be critical. The Company’s strategy to effectively managing is competition, and improvement in relative position shall remain imperative. Furthermore, GAL’s strong commitment to regulatory compliance and governance standards continues to reinforce its operational credibility and stakeholder confidence.

About the Entity
Ghandhara Automobiles Limited (GAL), a subsidiary of Bibojee Services (Pvt.) Limited and part of the Bibojee Group founded by the late Lt. Gen. (Retd.) Habibullah Khan Khattak, was established in 1981 and listed on the Pakistan Stock Exchange in 1992. The Company operates an assembly facility at Port Qasim, Karachi, with a combined installed capacity of 4,800 commercial vehicles and 6,000 passenger vehicles annually. Its product lineup mainly comprises JAC, Dongfeng, and Renault-branded trucks, supported by a nationwide 3S network.