Sazgar Engineering Works (SAZEW) posted a profit after tax (PAT) of Rs. 8.4 billion for the first half of FY2025-26, representing a 27% year-on-year increase and an earnings per share (EPS) of Rs. 139.62. The results indicate strong performance over the first six months despite some short-term challenges.

However, the company’s second-quarter (2QFY26) profit stood at Rs. 4 billion, or an EPS of Rs. 66.55. While this marks a 67% growth YoY, it reflects a 99% drop compared to the previous quarter. The significant quarterly decline has drawn attention from investors and analysts.

Topline Securities noted that the results fell short of market expectations, primarily due to lower-than-anticipated net sales. Additionally, higher distribution and marketing expenses weighed on quarterly profitability, affecting the overall performance despite the positive half-year growth.

Sazgar’s performance highlights the company’s resilience in the automotive sector, particularly amid fluctuating demand and rising operational costs. Analysts expect the company to focus on improving efficiency and optimizing costs in upcoming quarters to maintain sustainable growth.

The mixed results signal that while Sazgar’s half-year trajectory remains positive, short-term volatility in sales and expenses could continue to influence quarterly earnings. Investors are closely watching for the company’s strategy to manage expenses and enhance revenue streams in the coming months.