Sazgar Engineering Works Limited posted its highest-ever annual profit of Rs23.6 billion in fiscal year 2026, marking a 44% increase from the previous year, according to a result review by Arif Habib Limited.

The company also reported a record quarterly profit of Rs8.7 billion in the fourth quarter, up 151% year-on-year and 36% from the previous quarter.

Sazgar declared a cash dividend of Rs20 per share for the fourth quarter, taking its total dividend for FY26 to Rs70 per share.

The company’s annual revenue surged 76% to Rs191.7 billion, mainly driven by a 77% increase in four-wheeler sales to 19,179 units.

Fourth-quarter revenue rose 181% year-on-year and 62% quarter-on-quarter to Rs76.5 billion. Four-wheeler sales reached 6,549 units during the quarter, more than twice the level recorded a year earlier.

Sazgar also sold around 1,370 Tank vehicles during the quarter.

Despite the strong growth in sales, the company’s annual gross margin declined to 24.2% from 29.1% a year earlier. The quarterly gross margin also fell to 22.3% from 25.1%.

Arif Habib Limited attributed the margin pressure mainly to changes in the product mix and the impact of rupee depreciation.

Distribution expenses increased 78% annually to Rs6.2 billion in FY26. Fourth-quarter distribution costs jumped 124%, largely due to deliveries of the newly launched Tank 500.

Other income rose 96% to Rs2.7 billion during the year, while quarterly other income increased 108% to Rs667 million, mainly supported by higher income from deposits.

Finance costs climbed 97% to Rs454 million in FY26, primarily due to higher long-term financing. Fourth-quarter finance costs surged more than fivefold year-on-year to Rs153 million and increased 50% from the previous quarter.

The effective tax rate remained broadly stable at 38.7% in the fourth quarter, compared with 38.9% in the same period last year.