Honda Atlas Cars (Pakistan) Limited (PSX: HCAR) just announced its latest financial results. The company recorded a massive threefold increase in its net profit. This covers the three months ended June 30, 2026. Specifically, the profit surged to Rs. 2.49 billion. This marks a significant jump from Rs. 828.44 million during the corresponding period last year. Consequently, the company’s earnings per share (EPS) tripled to Rs. 17.41. Previously, it stood at just Rs. 5.80 in the same quarter last year.
Strong Sales Drive Revenue Growth
The company showcased an equally impressive top-line performance. Sales jumped 41% year-on-year. They hit Rs. 37.20 billion. In contrast, the company reported Rs. 26.46 billion in the prior period. Meanwhile, the cost of sales rose in a near-equal proportion. It increased by 42% to reach Rs34.34 billion. Despite this rising cost, the gross profit expanded by 26%. It settled at Rs. 2.87 billion, up from Rs. 2.27 billion. Therefore, this growth clearly shows the competitive cost dynamics within the automotive sector.
Honda Atlas maintained a degree of operational discipline regarding its expenditures. For instance, administrative expenses dropped by 5% to Rs. 573.71 million. However, distribution and marketing costs rose 20% to Rs. 419.49 million. Furthermore, other expenses increased 18% to Rs. 247.78 million. Finance costs emerged as a notable drag. They more than tripled to Rs. 631.09 million from Rs. 202.64 million.
Fortunately, a near-fourfold surge in other income provided a powerful cushion against this rising cost base. Other income jumped dramatically to Rs. 2.09 billion. Previously, it sat at Rs. 553.03 million. As a result, the combined subtotal of below-gross-profit items achieved a dramatic 126% turnaround. It swung from a negative Rs. 814.01 million last year to a positive Rs. 217.74 million this year.
Taxation & Final Earnings of Honda Atlas Cars
These positive financial dynamics pushed the profit before levy and taxation to more than double. It reached Rs. 3.08 billion. This represents a 111% gain over the previous Rs. 1.46 billion. Additionally, the company introduced a new levy charge of Rs. 109.45 million. This charge was absent in the prior year period. Even with this new deduction, the profit before taxation still more than doubled. It rose 104% to Rs. 2.97 billion from Rs. 1.46 billion.
Finally, taxation declined 23% to Rs. 489.14 million from Rs. 632.39 million. This decline provided an additional tailwind. Ultimately, it amplified the bottom-line result and delivered the threefold surge in profit for the period.
Statement of Profit or Loss Data
| Description | 2026 (Rs.000) | 2025 (Rs.000) | Change (%) |
|---|---|---|---|
| Sales | 37,201,684 | 26,461,970 | 40.59% |
| Cost of sales | (34,335,185) | (24,187,126) | 41.96% |
| Gross profit | 2,866,499 | 2,274,844 | 26.01% |
| Distribution and marketing costs | (419,490) | (350,247) | 19.77% |
| Administrative expenses | (573,713) | (603,913) | -5.00% |
| Other income | 2,089,817 | 553,027 | 277.89% |
| Other expenses | (247,784) | (210,238) | 17.86% |
| Finance cost | (631,087) | (202,640) | 211.43% |
| Subtotal | 217,743 | (814,011) | -126.75% |
| Profit before levy and taxation | 3,084,242 | 1,460,833 | 111.13% |
| Levy | (109,452) | – | – |
| Profit before taxation | 2,974,790 | 1,460,833 | 103.64% |
| Taxation | (489,140) | (632,394) | -22.65% |
| Profit for the period | 2,485,650 | 828,439 | 200.04% |
| Earnings per share- basic and diluted (Rupees) | 17.41 | 5.8 | 200.17% |
