Ghandhara Tyre & Rubber Company Limited (GTYR) expects sales volumes and margins to improve in FY27, supported by recovering automobile demand and incentives proposed under the draft Auto Policy, AKD Research said after the company’s analyst briefing.

The research house noted that GTYR reported a loss of Rs3.0 per share in FY26, compared with earnings of Rs3.8 per share a year earlier, as lower domestic sales volumes, higher production costs, and pricing pressures hit profitability.

AKD Research said management expects gross margins to recover in FY27 amid higher sales volumes and operational efficiencies, including a planned 30MW solar project aimed at reducing energy costs. The company also plans to introduce new tyre sizes in the OEM and replacement markets and remains optimistic about demand growth driven by the improving outlook for the auto sector. However, management identified geopolitical tensions, under-invoiced imports and volatile raw material prices as key business risks.