Pakistan’s listed automobile companies recorded a strong increase in profitability during the quarter ended June 2026, with combined earnings rising 39.2% year-on-year to Rs. 28.4 billion, according to an Arif Habib Limited (AHL) research report.
The growth was supported by higher vehicle sales, the introduction of new models and a significant expansion in auto financing. Sector-wide revenue increased 33.7% to Rs. 310.9 billion, while gross profit rose 29% to Rs. 46.9 billion. The sector recorded a gross margin of 15.1% and a net margin of 9.1%.
Passenger cars, light commercial vehicles and 4×4 sales increased 32.4% year-on-year to 62,416 units during the quarter, compared with 47,155 units a year earlier. Outstanding auto financing also climbed 38% to Rs. 381.69 billion by the end of June 2026, up from Rs. 277 billion in June 2025.
Other income across the sector increased 53.5% to Rs. 11.4 billion, mainly due to one-off gains related to the Sindh Infrastructure Development Cess and higher returns on cash balances.
Sazgar Engineering Works emerged as the largest contributor to earnings growth, with quarterly profit surging 150.6% to Rs. 8.7 billion. Its revenue increased 180.7%, supported by more than double the four-wheeler sales, which reached 6,549 units, along with deliveries of the Tank 500.
Atlas Honda posted a 25.2% increase in earnings to Rs. 6 billion, while Honda Atlas Cars’ profit nearly tripled to Rs. 2.5 billion. Millat Tractors also recorded a 36.3% rise in earnings to Rs. 1.8 billion as its sales volume increased 42.4%.
However, Indus Motor reported a 5.4% decline in profit to Rs. 6.1 billion due to lower revenue and increased competition. Ghandhara Automobiles’ consolidated profit fell 14.6% to Rs. 1.6 billion, while Ghandhara Industries reported largely unchanged earnings of Rs. 1.7 billion.
Across the wider automotive market, tractor sales increased 42.6% to 8,499 units, truck sales rose 37.2% to 2,561 units, and two-wheeler sales climbed 27.4% to 530,481 units during the quarter.
The earnings growth comes as Pakistan’s automotive industry faces increasing pressure to improve localisation and adopt electric mobility. At the Pakistan International Auto Show 2026 in Lahore, industry stakeholders highlighted the need for greater competitiveness, affordability, quality and technological development.
The automotive sector contributes nearly 4% to Pakistan’s GDP and supports millions of jobs through its broader supply chain. The latest performance indicates continued improvement in vehicle demand and financing activity during the quarter ended June 2026.
