Honda Atlas profit triples to Rs2.5bn on surging sales, other income

July 29, 2026 (MLN): Honda Atlas Cars (Pakistan) Limited (PSX: HCAR) recorded a threefold increase in its net profit for the three months ended June 30, 2026, with profit for the period surging to Rs2.49bn from Rs828.44m in the corresponding period last year.

Showing this exceptional bottom-line growth, the company's earnings per share (EPS) tripled to Rs17.41 from Rs5.80 in the same quarter last year.

The top-line performance was equally impressive, with sales jumping 41% year-on-year to Rs37.20bn from Rs26.46bn in the prior period.

Cost of sales rose in near-equal proportion at 42% to Rs34.34bn, keeping gross profit expansion at a measured 26% to Rs2.87bn from Rs2.27bn showing the competitive cost dynamics of the automotive sector.

On the expenditure side, distribution and marketing costs rose 20% to Rs419.49m, while administrative expenses were trimmed by 5% to Rs573.71m, showing a degree of operational discipline. Other expenses increased 18% to Rs247.78m.

Finance cost, however, more than tripled to Rs631.09m from Rs202.64m, emerging as a notable drag below the gross line.

The standout development of the quarter was a near-fourfold surge in other income, which jumped to Rs2.09bn from Rs553.03m providing a powerful cushion against the rising cost base.

The combined subtotal of below-gross-profit items swung from a negative Rs814.01m last year to a positive Rs217.74m, a dramatic turnaround of over 126%.

These dynamics pushed profit before levy and taxation to more than double at Rs3.08bn from Rs1.46bn, a gain of 111%.

The introduction of a levy charge of Rs109.45m absent in the prior year period moderated the pre-tax figure slightly, with profit before taxation still more than doubling to Rs2.97bn from Rs1.46bn, a rise of 104%.

Taxation declined 23% to Rs489.14m from Rs632.39m, providing an additional tailwind that amplified the bottom-line result, delivering the threefold surge in profit for the period.

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