Indus Motor rewards shareholders with Rs51/share dividend in 3MFY26

October 28, 2025 (MLN): Indus Motor Company Limited (PSX: INDU) reported a profit after taxation of Rs6.72bn for the quarter ended September 30, 2025, up 32% from Rs5.09bn in the corresponding period last year.

Earnings per share increased 32% to Rs85.49 compared to Rs64.77 in SPLY.

The company declared cash dividend at Rs51 per share.

Revenue from contracts with customers surged 48% year-on-year to Rs61.74bn from Rs41.6bn, demonstrating exceptionally strong demand during the period. Cost of sales rose 42% to Rs51.2bn from Rs36.02bn.

Gross profit surged 89% to Rs10.54bn against Rs5.58bn in 3MFY24, with the gross margin improving significantly to 17.1% from 13.4% in the prior year period, indicating robust operational efficiency and pricing power.

Distribution expenses increased 5% to Rs696.9m, while administrative expenses rose 46% to Rs854.9m. Other operating expenses increased 52% to Rs81.3m. Workers' Profit Participation Fund and Workers' Welfare Fund surged 73% to Rs687.6m from Rs397.7m last year, reflecting higher profitability.

The company recorded a profit from operations of Rs8.22bn, up 2.1 times from Rs3.88bn in SPLY.

Other income declined 35% to Rs2.9bn from Rs4.46bn in the previous year.

Finance costs declined 20% to Rs49.7m from Rs61.8m, providing some relief to the bottom line.

Profit before taxation and levy stood at Rs11.07bn, up 34% from Rs8.28bn in 3MFY24. Levy decreased 93% to Rs1.7m from Rs25m.

Profit before taxation rose 34% to Rs11.07bn from Rs8.25bn in SPLY.

Taxation increased 38% to Rs4.35bn from Rs3.16bn in the prior period.

The company concluded 3MFY25 with a net profit of Rs6.72bn, delivering a net profit margin of 10.9% compared to 12.2%. The strong profit growth was driven by exceptional revenue expansion, substantially improved gross margins, and robust operating profit performance, demonstrating the company's market leadership and operational excellence.

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