ISLAMABAD: The automobile sector has reported a robust growth of 39 percent in its profit in just three months of 2026.
According to available details, the combined profitability of automobile companies listed on the KSE-100 index surged by 39.2% year-on-year. In rupees, it amounted to Rs28.4 billion in April-June 2026.
According to an Arif Habib Limited (AHL) research report, strong vehicle sales and new model launches supported the sector’s performance.
Meanwhile, higher auto financing also boosted demand during the quarter. The sector’s cumulative revenue increased 33.7% to Rs310.9 billion, while gross profit rose 29% to Rs46.9 billion. The overall gross margin stood at 15.1%, while the net margin reached 9.1% during the period.
Vehicle Sales and Financing Drive Growth
Sales of passenger cars, light commercial vehicles and 4x4s climbed 32.4% to 62,416 units during the quarter. In comparison, companies sold 47,155 units during the same period last year. Additionally, outstanding auto financing increased 38% year-on-year to Rs381.69 billion by the end of June 2026. The figure stood at Rs277 billion a year earlier, highlighting stronger access to vehicle financing.
Moreover, other income across the sector rose 53.5% to Rs11.4 billion. The increase mainly reflected one-off gains linked to the Sindh Infrastructure Development Cess and higher returns on cash balances.
Sazgar Engineering Works led sector earnings after its quarterly profit surged 150.6% to Rs8.7 billion. Its revenue jumped 180.7%, supported by more than double four-wheeler sales and deliveries of the Tank 500.
Atlas Honda posted a 25.2% increase in earnings to Rs6 billion, while Honda Atlas Cars tripled profit to Rs2.5 billion. Millat Tractors’ earnings grew 36.3% to Rs1.8 billion as sales volume increased 42.4%.
However, Indus Motor’s profit fell 5.4% to Rs6.1 billion amid lower revenue and stronger competition. Ghandhara Automobiles reported a 14.6% decline in consolidated profit to Rs1.6 billion.
For the latest updates, visit and follow The Truth International website (www.thetruthinternational.com), subscribe to the YouTube channel, and follow the Instagram and Facebook pages.
