Indus Motor profit rises 11% to Rs25.5bn in FY26

August 31, 2026 (MLN): Indus Motor Company Limited (PSX: INDU) recorded an 11% increase in its net profit for the year ended June 30, 2026, with profit after taxation climbing to Rs25.51bn from Rs23.01bn in the corresponding period last year.

Showing this healthy bottom-line growth, the company's basic and diluted earnings per share (EPS) expanded to Rs324.50 from Rs292.74 in FY25.

The Board of Directors has announced a final cash dividend of Rs47.00 per ordinary share (470%) for the year ended June 30, 2026. This is in addition to combined interim cash dividends of Rs148.00 per ordinary share (1,480%) already paid during the financial year.

The top-line performance was robust, with revenue from contracts with customers growing 20% year-on-year to Rs258.75bn from Rs215.14bn.

The revenue growth was underpinned by a 33% increase in total CKD and CBU unit sales to 45,035 units from 33,757 units last year, with the company maintaining a domestic market share of approximately 14.7%. Vehicle production also scaled up significantly, rising 37% to 45,597 units from 33,251 units in the prior year.

Cost of sales rose in near-equal proportion at 21% to Rs222.46bn, allowing gross profit to expand by 16% to Rs36.30bn from Rs31.20bn.

The improvement in margins was supported by a relative decline in material costs driven by a favorable exchange rate environment and effective cost reduction initiatives alongside increased localization of parts and components.

On the expenditure side, distribution expenses were sharply cut by 53% to Rs1.05bn from Rs2.26bn a standout saving on the cost front. Administrative expenses rose 20% to Rs4.30bn, and other operating expenses nearly doubled to Rs484.16m from Rs243.95m.

Workers' Profit Participation Fund and Workers' Welfare Fund rose 49% to Rs3.13bn from Rs2.10bn, showing the stronger profitability base. These combined movements delivered net profit from operations growth of 19% to Rs27.32bn from Rs22.98bn.

Other income grew 6% to Rs15.87bn from Rs14.95bn, continuing to be a significant contributor to overall profitability.

Returns on investments and bank placements remained a substantial component of this line, further supported by an unrealized gain recognised on the re-measurement of the long-term liability of Sindh Infrastructure Development Cess payable in accordance with IFRS requirements.

Finance costs rose 40% to Rs370.28m from Rs263.73m, though the absolute quantum remained modest relative to the earnings base.

Profit before taxation and levy grew 14% to Rs42.82bn from Rs37.67bn. Levy declined 93% to just Rs13.08m from Rs181.14m, bringing profit before taxation up 14% to Rs42.81bn from Rs37.49bn.

Taxation rose 20% to Rs17.31bn from Rs14.48bn a proportionally larger increase than pre-tax profit growth absorbing a portion of the operational gains and moderating the overall profit increase to 11% for the full year.

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