Baluchistan Wheels Limited (BWHL) reported earnings per share of PKR 23.44 for FY26, compared to earnings per share of PKR 23.67 in FY25. Furthermore, in 4QFY26, the company reported earnings per share of PKR 2.36, compared to earnings per share of PKR 8.28 in the same period last year (SPLY).
The plant has an annual production capacity of 3.0 million wheels. Capacity utilization stood at 45% compared to 43% vs SPLY. The company supplies wheels to major local OEMs, including Suzuki Motor Company, Indus Motor Company, Ghandhara Motors, Lucky Motor Corporation, Millat Tractors, Al-Ghazi Tractors, Ghandhara Industries, Ghandhara Automobiles, and Hinopak Motors, covering both N-series and F-series vehicles. BWHL holds approximately 100% market share in the local OEM steel wheel segment and remains the only domestic manufacturer of truck and bus steel wheels in Pakistan.
Wheels produced reached 379,400 units in FY26, up from 365,690 units in FY25, while wheels sold increased to 399,553 units from 350,553 units in the previous year. The car wheels segment recorded 22% YoY growth in sales revenue, while revenue from the truck and bus wheels segment increased by 66% YoY. In contrast, revenue from the tractor wheels segment declined marginally by 1% YoY.
The effective tax rate increased to 46% in FY26, compared with 31% in FY25, primarily due to Super Tax and provisions related to tax audit demands. Management expects the effective tax rate to normalize to around 35% in FY27, supported by reductions in the Super Tax rate. As per management, the FY27 turnover target is budgeted at PKR 3.5bn, based on OEM production and assembly schedules.
If geopolitical tensions in the Middle East and between the US and Iran ease, management believes turnover could potentially reach PKR 4.0bn. The company has successfully negotiated price increases ranging from 2% to 10% with Suzuki, Indus Motor Company, Ghandhara Industries, and Ghandhara Automobiles.
Price negotiations with Millat Tractors and Al-Ghazi Tractors remain ongoing. Tractor OEMs have alternative local sourcing options, including private vendors such as Saazgar and Cico. The total alloy wheel market in Pakistan remains relatively small at approximately 300,000–400,000 wheels annually.
According to management, establishing a new Chinese alloy wheel manufacturing facility would require an investment of more than USD 5.0mn. Given Pakistan’s annual car production of less than 250,000 units, the estimated payback period would exceed 20 years, making such an investment economically unattractive. OEMs currently meet their alloy wheel requirements largely through imports. Some local private parties have attempted to manufacture alloy wheels for OEMs; however, these initiatives faced significant quality related rejections
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