Auto

Honda Atlas Profits Surge 242% in 1HMY26

Honda Atlas Cars (Pakistan) Limited (HCAR) has reported a remarkable 242% year-on-year increase in profits for the first half of the 2025–26 fiscal year, driven by strong sales growth and successful new model launches. The company posted a profit after tax of Rs. 1,571 million (EPS: Rs. 11.00), compared to Rs. 460 million in the same period last year.

The surge comes amid a 59% increase in net sales to Rs. 51,880 million, supported by a 34% rise in total vehicle volumes to 11,818 units, including Civic, City, BR-V, and HR-V models. Quarterly profits also jumped 2.9 times to Rs. 742 million in 2QMY26, bolstered by the launch of the HR-V Hybrid in August and the Honda City 1.5L Aspire S CVT in September.

Gross margins improved to 8.1% from 6.9%, while other income rose 483% to Rs. 495 million, thanks to higher cash balances of Rs. 1.5 billion. Finance costs increased 63% to Rs. 315 million due to additional borrowings, and the effective tax rate fell to 33.9% from 39.6% last year.

Financial Snapshot 1HMY26 vs 1HMY25

Metric 1HMY26 1HMY25 YoY Change
Profit After Tax Rs. 1,571M Rs. 460M +242%
Net Sales Rs. 51,880M Rs. 32,567M +59%
Units Sold 11,818 8,803 +34%
Gross Margin 8.1% 6.9% +1.2pp
Other Income Rs. 495M Rs. 85M +483%
Finance Cost Rs. 315M Rs. 193M +63%

The strong performance reflects Honda Atlas’ strategic product launches and expanding market share in Pakistan’s automotive sector.