According to a research report from AL Habib Capital Markets Pvt Ltd, Sazgar Engineering Works Limited (SAZEW) posted strong FY26 results, with revenue up 76% year-on-year to PKR 191.7bn. Higher sales of GWM-Haval models and the inclusion of Tank 500 drove the growth. Four-wheeler sales surged 77% to 19,179 units, while three-wheeler sales rose 4% to 26,845 units. Profit after tax increased 44% to PKR 23.6bn (EPS: PKR 390.5), though gross margins declined to 24.2% from 29.1% last year due to product mix changes.

Management noted that recent GST increases are being absorbed without passing costs to customers, with pricing decisions deferred until the new auto policy is announced. Margins are expected to remain under pressure in the near term.

On the product front, SAZEW is expanding its NEV portfolio, having showcased 10 NEVs at the Pakistan Auto Show. The company plans to launch the GWM Cannon Alpha at a competitive price, while preparations for local CKD assembly are complete. ArcFox T1 and T5 are also planned, adding a third Chinese brand to its lineup.

SAZEW is proceeding with a PKR 22bn expansion project, including a fully automated paint shop, expected to be completed within 9–10 months. SAZEW will finance around PKR 17bn through debt, with the remainder from equity and reserves. Post-expansion, four-wheeler production capacity is projected to rise to about 180 vehicles per day, compared with the current 100.