Sazgar Engineering Works Limited (PSX: SAZEW) has emerged as one of Pakistan’s best-performing automobile assemblers. The company posted record profits in FY2025 and continues its strong momentum into FY2026 with impressive half-year results.
This comprehensive analysis covers Sazgar’s latest financial performance, vehicle sales statistics, expansion plans, and stock market outlook.
6MFY26 Financial Results
Sazgar delivered exceptional results for the first half of fiscal year 2026. The company posted a profit after taxation of Rs 8.44 billion for the six months ended December 31, 2025. This represents a 27.4% increase compared to Rs 6.63 billion in the same period last year.
Earnings per share (EPS) climbed to Rs 140 from Rs 110 in 6MFY25. Net sales surged 51.8% year-on-year to Rs 67.85 billion from Rs 44.69 billion, demonstrating strong sales volumes.
The Board approved an interim cash dividend of Rs15 per share (150% of face value) for Q2FY26. This marks the company’s second interim dividend for the fiscal year ending June 30, 2026.
Operating profit reached Rs 12.81 billion, up 25% year-on-year. Gross profit increased 30.6% to Rs 16.75 billion despite cost of sales rising 60.3% to Rs 51.10 billion.
FY2025 Annual Performance
Sazgar’s fiscal year 2025 results showcased extraordinary growth. The company posted a net profit of Rs 16.34 billion, marking a robust increase of 106% from Rs 7.94 billion recorded in FY24. EPS more than doubled to Rs 270.26 from Rs 131.29.
Revenue Growth
In fiscal year 2025, Sazgar’s revenue reached Rs 108.69 billion, an increase of 88.57% compared to the previous year’s Rs 57.64 billion. This growth came on the back of economic stability achieved during the year.
Lower inflation and declining discount rates provided momentum to automobile sales. Vehicle prices remained stable due to appreciation of the Pakistani Rupee.
Profit Margins
Gross profit margin attained its optimum level of 29.11% in FY2025. The company recorded 102.23% growth in gross profit despite cost pressures from inflationary factors and elevated energy tariffs.
Improved margins primarily resulted from higher profitability in the four-wheeler category. Net margin recovered significantly after struggling in previous years.
Vehicle Sales Breakdown
Sazgar achieved remarkable sales growth across its core vehicle segments in FY2025. The four-wheeler division drove most of the company’s revenue gains.
Read more: Sazgar launches flagship Haval H6 PHEV in Pakistan
Four-Wheeler Sales
Four-wheeler sales reached 10,889 units in FY2025, reflecting a 101.95% increase from 5,392 units in FY2024. This includes 45 units of imported CBU vehicles, up from 18 units in the prior year.
The company manufactures and markets four-wheelers under brands including HAVAL, JOLION, and BAIC. It also imports and markets vehicles under TANK-500 and ORA brands.
In December 2025, Sazgar produced 1,300 four-wheelers at its car plant near Sunder-Raiwind Road and sold 1,165 units. Monthly production consistently exceeds 1,000 units.
Three-Wheeler Sales
Three-wheeler sales rose to 25,786 units in FY2025, up 71.75% from 15,014 units in FY2024. The company expects this segment to maintain its growth trajectory.
As of February 2026, Sazgar holds approximately 30% share of the Pakistani rickshaw market, producing 3,350 units monthly. In February 2024, it became the first company in Pakistan to obtain a license to produce electric three-wheelers.
The tractor wheel rims segment faced challenges, declining 35.27% with 42,622 units sold in FY2025 compared to 65,850 units in FY2024.
Rs 11.5 Billion Expansion Plan
Sazgar announced a major Rs 11.5 billion expansion project aimed at increasing vehicle production capacity by March 2026. The plan emphasizes hybrid and electric vehicles.
The company aims to raise daily production from around 40 vehicles to 100 units within 18 months. The expansion will focus on producing hybrid electric vehicles (HEVs), plug-in hybrid electric vehicles (PHEVs), and battery electric vehicles (BEVs).
A key component involves Pakistan’s upcoming New Energy Vehicle (NEV) policy. However, analysts note that expiration of Greenfield incentives in June 2026 could affect margins in the short term.
PHEV Vehicle Launches
Sazgar is positioning itself at the forefront of Pakistan’s transition to cleaner mobility. The company launched its first CKD Plug-In Hybrid Electric Vehicle (PHEV) HAVAL H6 1.5L on August 16, 2025.
CKD rollouts of TANK-500 and CANNON PHEVs are planned by March 31, 2026. Local assembly of TANK-500 could reduce prices by 20-30% compared to imported alternatives.
The company discontinued its home appliances business (marketed under Whirlpool brand) effective September 1, 2025. This strategic decision allows greater focus on automotive operations.
Stock Performance and Analyst Outlook
Sazgar’s stock has delivered exceptional returns for investors. SAZEW reached its all-time high on February 9, 2026 with a price of Rs 2,487.00. The 52-week trading range spans Rs 1,000 to Rs 2,487.
The stock has risen 69.38% over the past year. Current market capitalization stands at approximately Rs 117.21 billion with 60.45 million shares outstanding.
Seven analysts cover the stock with a unanimous “Strong Buy” rating. The average 12-month price target is Rs 2,522.86, with a high estimate of Rs 2,692 and low estimate of Rs 2,230.
The dividend yield reached 4.56% in 2025 with a payout ratio of 19.24%. The company maintains strong dividend growth, reflecting confidence in its cash flow generation.
Exports remain a strategic priority for Sazgar. The company is making continuous efforts to enhance export volumes to contribute to Pakistan’s foreign exchange earnings.