Hinopak Motors swings back to profit in 1HFY26

November 26, 2025 (MLN): Hinopak Motors Limited (PSX: HINO) returned to profitability in the half year ended September 30, 2025, posting a profit after tax of Rs540.3 million, compared to a loss of Rs47.2m in the same period last year.

This translates into a net profit margin of around 7.8%. Earnings per share stood at Rs21.78, versus a loss per share of Rs1.90 last year.

Revenue rose sharply by 49.7% to Rs6.92bn, supported by higher sales volumes and improved market traction.

With cost of sales increasing at a slower pace of 39.8%, gross profit more than doubled to Rs1.32bn, showing a gross margin of 19%, up significantly from the previous period.

Distribution and administrative expenses rose moderately by 17.5% and 6.6%, respectively. Meanwhile, other income surged nearly 193% to Rs78.6m, providing additional support to earnings.

The company also recorded other expenses of Rs50.8m, which were not present in the same period last year.

Operating profit grew 291% to Rs881.1 million, driven by stronger margins and improved cost controls. Finance costs declined 16.6%, helping lift pre-tax earnings to Rs575.2m, compared to a loss of Rs62.0m in the same period last year.

After accounting for Rs34.9m in income tax expense, Hinopak closed the period with a solid profit of Rs540.3m, marking a notable recovery in its financial performance during 1HFY26.

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