Honda Atlas Cars (Pakistan) Limited reported a sharp increase in profitability for the quarter ended June 30, 2026, driven by strong sales growth and higher other income. The automaker delivered a solid financial performance despite facing increased finance costs during the period.
The company posted a net profit of Rs2.49 billion, compared with Rs828.44 million in the same quarter last year. As a result, earnings per share rose to Rs17.41 from Rs5.80, reflecting a significant improvement in overall profitability.
Sales growth strengthens quarterly performance
Honda Atlas recorded sales of Rs37.20 billion during the quarter, marking a 41 percent increase from Rs26.46 billion a year earlier. Meanwhile, the cost of sales climbed 42 percent to Rs34.34 billion. Consequently, gross profit increased by 26 percent to Rs2.87 billion.
The company maintained operational discipline by reducing administrative expenses by 5 percent to Rs573.71 million. However, distribution and marketing expenses rose 20 percent to Rs419.49 million, while other expenses increased 18 percent to Rs247.78 million.
Higher income offsets rising finance costs
Finance costs surged to Rs631.09 million from Rs202.64 million, creating pressure on earnings. However, other income jumped nearly fourfold to Rs2.09 billion, providing strong support to the company’s financial performance.
The improvement helped the combined below-gross-profit items shift to a positive Rs217.74 million from a negative Rs814.01 million in the previous year. Consequently, profit before levy and taxation climbed 111 percent to Rs3.08 billion.
The company also recorded a levy charge of Rs109.45 million during the quarter. Even so, profit before taxation increased 104 percent to Rs2.97 billion. Additionally, taxation declined 23 percent to Rs489.14 million, further boosting net earnings and allowing Honda Atlas to deliver a threefold increase in quarterly profit.
