Honda Atlas Cars (Pakistan) Limited (HCAR) announced its financial results for 1QMY26 today, posting a profit after tax (PAT) of Rs. 828 million (earnings per share: Rs. 5.80), representing a year-on-year increase of 4.1 times (310 percent) as compared to a profit of Rs. 202.6 million
Net sales during 1QMY26 clocked in at Rs. 26,462 million in contrast to Rs. 15,970 million in the same period last year, depicting an increase of 66 percent year-on-year. According to Arif Habib Limited (AHL), this was mainly due to a surge in volumes by 5.5 times year-on-year to 5,682 units (Civic & City: 5,154 units and BRV & HRV: 366 units).
On a quarter-on-quarter basis, the topline declined by 4 percent, primarily due to a 3 percent reduction in volumes, driven by a high base and stronger sales in January.
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Gross margins improved to 8.6 percent versus 6.33 percent in 1QMY25 but declined from 10.1 percent in 4QMY25. The year-on-year margin expansion was supported by a decline in CRC prices.
Distribution expenses rose 35 percent year-on-year to Rs. 350 million, reflecting higher sales volumes, though they declined 36 percent quarter-on-quarter.
Administrative expenses rose by 54 percent, while remaining flat quarter-on-quarter.
Other income surged 61 percent year-on-year and 49 percent quarter-on-quarter to Rs. 553 million.
Finance cost declined by 29 percent year-on-year given a decline in total debt and declining financing rates.
The effective tax rate stood at 43.29 percent in 1QMY26, compared to 47.14 percent in 1QMY25.
