Honda Atlas Cars Pakistan Limited (HCAR) reported a 19 percent year-on-year increase in annual profit for MY26, supported by strong vehicle sales growth and higher revenues despite pressure on margins during the final quarter.
The company posted a profit after tax of Rs. 3.23 billion, translating into earnings per share (EPS) of Rs. 22.64 for the year, according to AKD Securities.
However, quarterly earnings weakened significantly. In 4QMY26, Honda Atlas recorded profit after tax of Rs. 1.0 billionwith EPS of Rs. 7.05, compared to Rs. 1.68 billion and EPS of Rs. 11.78 in the same period last year, reflecting a 40 percent decline.
Quarterly net sales rose 35 percent year-on-year to Rs. 37.3 billion, driven by a 43 percent increase in vehicle sales volumes to 8,058 units from 5,653 units a year earlier.
The growth was supported by stronger consumer demand, including sales contributions from the Honda City facelift model and the Honda HR-V hybrid variant.
Despite stronger sales, profitability came under pressure due to shrinking margins and sharply higher finance costs.
Gross margins during the quarter fell to 7.5 percent, compared to 10.1 percent in the same quarter last year. Analysts attributed the decline to the carbon levy introduced in July 2025 and a higher sales mix of lower-priced entry-level vehicles.
Finance costs surged 170 percent year-on-year to Rs. 936 million, significantly impacting bottom-line profitability, while operating expenses also increased due to expanded sales activity.
On a full-year basis, net sales increased 57 percent to Rs. 122.3 billion, while annual vehicle sales climbed 61 percent, reflecting continued recovery in Pakistan’s automobile market.
The company also announced a final cash dividend of Rs. 9 per share alongside its financial results.
