PACRA Maintains the Entity Ratings of Ghandhara Industries Limited

Ghandhara Industries Limited (GIL), a public listed entity, operates as the assembler and progressive manufacturer of Isuzu trucks, buses, and pick-ups in Pakistan. GIL functions under the umbrella of the Bibojee Group of Companies, a diversified conglomerate with interests in automobiles, textiles, insurance, construction, and tyres. The Company’s production facility, located at Sindh Industrial Estate (S.I.T.E), Karachi, enables the manufacturing of a diversified portfolio, including light-duty (N-Series), medium/heavy-duty (F-Series and C-Series) trucks, D-Max pickups, buses, and customized vehicle bodies (such as troop carriers, water bowsers, and mobile workshops). GIL benefits from its long-standing technical collaboration with Isuzu, Japan, and Thailand for pickups, which provides access to global designs and quality standards. The Board, supported by an experienced management team, ensures strong governance, robust internal controls, and a framework that drives operational efficiency and long-term sustainability. The trucks and buses industry in Pakistan is inherently cyclical, influenced by infrastructure development, logistics demand, and macroeconomic conditions. After steep contractions in FY23 (-41%) and FY24 (-31%), volumes rebounded ~96.7% in FY25 (till June 2025) to ~5,232 units, primarily driven by lower policy rates, moderating inflation, and supported by improved liquidity, exchange rate stability, and eased supply bottlenecks, which collectively strengthened consumer confidence. The National Transport Policy 2018, emphasizing fleet renewal, axle load management, and Euro-II+ standards, is expected to support demand for contemporary trucks, an area where GIL remains strongly positioned through its collaboration with Isuzu. GIL has steadily reinforced its leadership in the truck segment, capturing a market share of ~65.4% in FY25 (till June 2025), up from ~57% in FY24, driven by its exclusive Japanese Isuzu portfolio, recognized for durability, fuel efficiency, superior resale value, and dependable after-sales support. In the global commercial vehicle market, Japanese players play a leading role in the electric vehicle (EV) segment, particularly in trucks and buses. This growing participation is intensifying competition, accelerating technology adoption, and shaping customer expectations worldwide, highlighting the need for strategic innovation and strong market positioning for local industry leaders. In terms of product contribution, GIL’s topline remains predominantly driven by trucks, which accounted for ~77.5% of sales in FY25 (FY24: 71.0%), reflecting its entrenched leadership in the segment. Buses contributed ~12.5% (FY24: 8.2%), body fabrication ~2.6% (FY24: 10.4%), and the D-Max pickup series ~6.9% (FY24: 8.5%). Revenue from parts, accessories, and services stood at ~0.5% (FY24: 1.9%). The increasing concentration of trucks underscores the Company’s strength in capturing logistics demand, though it also exposes revenues to cyclical industry trends. Based on robust volume growth, GIL’s revenue surged to ~PKR 37.4bln in FY25 (FY24: ~PKR 14.7bln). Resultantly, margins improved markedly across all levels, with the bottom line rising to ~PKR 4.5bln (FY24: ~PKR 781mln). The financial risk profile is reflected in strong coverage ratios and cash flow generation. Total debt declined sharply to ~PKR 106mln in FY25 (FY24: ~PKR 1.45bln), entirely comprising long-term borrowings with no reliance on short-term debt, resulting in a minimal leverage ratio of ~1.5% (FY24: ~14.2%) and an interest coverage of ~59.8x (FY24: 2.5x).
The ratings remain dependent on GIL’s ability to sustain its topline growth and profitability trajectory, while maintaining strong liquidity and low leverage. Adequate cash flow generation to meet working capital and expansion needs, along with consistency in performance indicators, will be essential for the ratings going forward.

About the Entity
Ghandhara Industries Limited, established in 1963 and listed on the PSX, is the assembler of Isuzu trucks and buses in Pakistan. Majority-owned by the Bibojee Group, the Company operates a manufacturing facility at S.I.T.E., Karachi, producing trucks, buses, and pickups, supported by a nationwide 3S service network.