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Honda Atlas Cars Pakistan Limited (HCAR) has reported a 117 percent year-on-year increase in profit for the first nine months of FY26, driven mainly by a sharp recovery in car sales volumes despite pressure on margins and higher taxes.
According to the company’s financial statement, Honda Atlas posted a profit after tax of Rs. 2.23 billion for 9MFY26, compared to Rs. 1.03 billion in the same period last year. Earnings per share stood at Rs. 15.59, reflecting a strong rebound in demand.
In the third quarter alone, the company earned Rs. 655 million, up 16 percent year on year, though profits slipped 12 percent quarter-on-quarter due to lower gross margins and a higher effective tax rate.
Net sales surged to Rs. 33.1 billion in 3QFY26, marking an 86 percent annual increase, supported by a 92 percent rise in vehicle sales to 7,159 units. However, gross margins declined to 7.55 percent, falling short of market expectations due to higher costs.
An industry analyst noted, “Honda’s volume recovery is impressive, but rising taxes and cost pressures continue to weigh on profitability.”
Distribution expenses jumped sharply on the back of higher sales, while the effective tax rate rose to 45.5 percent in the quarter. Despite these challenges, Honda Atlas continues to trade at an attractive forward P/E of around 8x, keeping investor interest intact.
