Hinopak earnings triple in FY26

June 18, 2026 (MLN): Hinopak Motors Limited (PSX: HINO) posted a remarkable more than three-fold surge in its net profit for the year ended March 31, 2026, reaching Rs541.25m compared to Rs161.96m in the corresponding period last year.

Showing this exceptional bottom-line growth, the company's earnings per share (EPS) expanded to Rs21.82 from Rs6.53 in FY25. Along with the results, the board has declared a cash dividend of Rs10.91 per share (109.10%).

The top-line performance showed steady improvement, with revenue from contracts with customers rising 6% year-on-year to Rs11.00bn from Rs10.34bn in the prior year.

Cost of sales declined marginally by 1% to Rs8.96bn, driving a sharp 58% jump in gross profit to Rs2.05bn from Rs1.29bn last year.

However, the company faced rising cost pressures below the gross profit line.

Distribution costs surged 57% to Rs624.17m, while administrative expenses climbed 11% to Rs501.59m. Other expenses more than doubled, spiking 132% to Rs55.05m.

On the positive side, other income rose 19% to Rs212.00m, and reversal of impairment on trade receivables and deposits edged up 15% to Rs7.92m.

Despite these headwinds, the core operating profit soared 80% to Rs1.09bn from Rs601.98m in the same period last year.

Below the operating line, finance costs increased 19% to Rs335.78m. After accounting for a levy of Rs143.83m, profit before taxation surged 228% to Rs605.47m from Rs184.41m in the prior year.

The company's income tax provision rose sharply by 186% to Rs64.22m, reflecting the significantly higher earnings base. Nevertheless, this did not impede the final outcome, with profit for the year delivering a striking 234% expansion to Rs541.25m.

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