Honda Atlas Profits Skyrocket as Car Sales Rebound in Pakistan

Honda Atlas Cars has reported a significant increase in profits for the first quarter of the Fiscal Year MY26. The automaker’s performance was enhanced by a strong rise in unit sales and improved gross margins, reflecting robust consumer demand.

Honda Atlas Cars (Pakistan) Limited (HCAR) posted a profit after tax of Rs828 million in 1QMY26, marking a year-on-year increase of 310 percent compared to Rs202.6 million during the same period last year. Earnings per share stood at Rs 5.80.

Net sales for the quarter reached Rs26,462 million, up 66 percent year-on-year from Rs15,970 million. This growth was largely attributed to a surge in volumes, which jumped 5.5 times to 5,682 units. The Civic and City models accounted for 5,154 units, while the BRV and HRV models contributed 366 units.

On a quarter-on-quarter basis, however, net sales dipped 4 percent, primarily due to a 3 percent decline in volumes. This was linked to a high sales base in January.

Gross Margins Rise Year-on-Year but Dip from the Previous Quarter

Gross margins improved to 8.6 percent in 1QMY26, compared to 6.33 percent in 1QMY25, supported by falling CRC prices. However, this marked a decline from the 10.1 percent margin recorded in 4QMY25.

Distribution expenses rose 35 percent year-on-year to Rs350 million, in line with higher sales activity, though they dropped 36 percent quarter-on-quarter. Administrative costs climbed 54 percent year-on-year but remained unchanged compared to the previous quarter.

Other income increased by 61 percent year-on-year and 49 percent quarter-on-quarter, reaching Rs553 million. Meanwhile, finance costs dropped 29 percent due to reduced debt levels and falling interest rates.

The effective tax rate for the quarter stood at 43.29 percent, a slight decrease from 47.14 percent recorded in 1QMY25.

The strong quarterly performance demonstrates Honda Atlas’s ability to capitalize on growing demand, with unit sales and cost efficiencies playing a key role in delivering robust results.