• Millat Tractors Limited (MTL) announced its financial results for 1QFY26, posting a Profit After Tax (PAT) of PKR 514mn (EPS: PKR 2.57), compared to PKR 622mn (EPS: PKR 3.12) in the same period last year, reflecting a decline of 17% YoY and 61% QoQ. The company did not announce any dividend for the period, according to a report by AHL Research.
• Net revenue for 1QFY26 stood at PKR 7,546mn, down 6% YoY from PKR 7,996mn in the same period last year, primarily due to lower volumetric sales, which declined 15% YoY to 2,177 units, reflecting weak farm economics further exacerbated by recent floods. Sequentially, revenue dropped 38% QoQ due to the reason mentioned above.
• Gross margins were 27.2% in 1QFY26, compared to 29.1% in the corresponding period last year, primarily due to a slight depreciation of PKR against USD. Furthermore, we believe the higher proportion of lower-priced variants was sold due to weak farm economics, which contributed to the decline in margins.
• Other income declined to PKR 32mn in 1QFY26 (–69% YoY) against PKR 102mn last year, due to lower cash and cash equivalents and a decline in interest rates.
• Meanwhile, finance cost fell 25% YoY to PKR 471mn (vs PKR 628mn in SPLY) due to a decline in overall borrowings and easing interest rates.
• The company’s effective tax rate stood at 35.0% in 1QFY26 versus 36.3% in the same period last year. In 4QFY25, the company reported an effective taxation rate of 29.4%.

AHL Research