Honda Atlas Cars' profit triples in 1HFY26

November 20, 2025 (MLN):  Honda Atlas Cars (Pakistan) Limited (PSX: HCAR) reported a profit after tax of Rs1.57bn for 1HFY26, surging 3.4 times from Rs460.4m in the corresponding period last year.

Earnings per share increased 3.4 times to Rs11 compared to Rs3.22 in 1HFY25.

Revenue from contracts with customers surged 59% year-on-year to Rs51.88bn from Rs32.57bn, demonstrating exceptionally strong demand during the period. Cost of sales rose 57% to Rs47.69bn from Rs30.33bn.

Gross profit increased 88% to Rs4.2bn against Rs2.23bn in 1HFY25, with the gross margin improving significantly to 8.1% from 6.9% in the prior year period, indicating enhanced operational efficiency.

Distribution and marketing costs increased 47% to Rs648.1m from Rs440.6m, while administrative expenses rose 47% to Rs1.22bn from Rs830.1m. Other income increased 2.4 times to Rs1.05bn from Rs428.6m last year. Other expenses increased 2.8 times to Rs277.1m from Rs100.3m in 1HFY25.

Finance costs increased 8% to Rs517.3m from Rs480.4m in the previous year.

Profit before levy and taxation stood at Rs2.58bn, up 3.2 times from Rs809.8m in 1HFY25. Levy stood at Rs119.1m in 1HFY25, which was absent in the current period.

Profit before taxation increased 3.7 times to Rs2.58bn from Rs690.6m in 1HFY25.

Taxation increased 4.4 times to Rs1.01bn from Rs230.3m in the prior period.

The company concluded 1HFY26 with a net profit of Rs1.57bn, delivering a net profit margin of 3% compared to 1.4% in 1HFY25.

The exceptional profit growth was driven by robust 59% revenue expansion, an 88% surge in gross profit with improved margins, and a 2.4-fold increase in other income, which more than offset higher operating expenses and taxation, demonstrating strong momentum in Pakistan's automobile sector amid recovering demand.

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