ISLAMABAD: Honda Atlas Cars (Pakistan) Limited reported a profit after tax of Rs1.57 billion for 1HFY26. The earnings rose 3.4 times from Rs460.4 million recorded in the same period last year. Earnings per share also increased 3.4 times to Rs11 compared to Rs3.22 in 1HFY25. The company delivered strong financial results as demand strengthened across the auto segment.
Sales and Gross Profit Experience Significant Growth
Revenue from contracts with customers surged 59% year-on-year to Rs51.88 billion from Rs32.57 billion. The rise reflected strong consumer demand and improved market activity. Cost of sales increased 57% to Rs47.69 billion from Rs30.33 billion during the same period. Consequently, gross profit rose 88% to Rs4.2 billion against Rs2.23 billion in 1HFY25. The gross margin also improved to 8.1% from 6.9%, showing better operational efficiency.
Operational Costs Rise with Business Expansion
Distribution and marketing expenses increased 47% to Rs648.1 million from Rs440.6 million. Administrative expenses also rose 47% to Rs1.22 billion from Rs830.1 million. Other income increased 2.4 times to Rs1.05 billion from Rs428.6 million, boosting overall profitability. However, other expenses rose 2.8 times to Rs277.1 million from Rs100.3 million in 1HFY25.
Higher Profit Achieved Despite Increased Costs
Finance costs increased 8% to Rs517.3 million from Rs480.4 million. Profit before levy and taxation reached Rs2.58 billion, rising 3.2 times from Rs809.8 million last year. The company recorded a levy of Rs119.1 million in 1HFY25, which did not apply in the current period. Profit before taxation increased 3.7 times to Rs2.58 billion from Rs690.6 million. Taxation rose 4.4 times to Rs1.01 billion from Rs230.3 million.
Company Delivers Strong Net Margin Improvement
Honda Atlas concluded 1HFY26 with a net profit margin of 3% compared to 1.4% last year. The exceptional growth stemmed from strong revenue gains, improved margins, and a sharp rise in other income. These factors outweighed higher operating costs and taxation. The company’s results reflected recovering demand and renewed momentum in Pakistan’s automobile sector.
