Higher Sales Drive Profit Surge in Pakistan’s Auto Industry

Karachi: The Pakistani auto industry is poised for a surge in profitability during the first quarter of fiscal year 2026, according to a report by AKD Securities Limited. The report forecasts a 25 percent year-on-year increase in earnings, amounting to 6.7 billion Pakistani Rupees, driven by a 56 percent rise in volumetric sales.

The report highlights that Indus Motor Company (INDU) is expected to report earnings of 5.7 billion Rupees, with an earnings per share (EPS) of 73.1 Rupees. This marks an increase from the 5.1 billion Rupees, or 64.8 Rupees EPS, reported in the same period last year, translating to a 13 percent year-on-year growth.

Honda Atlas Cars (HCAR) is also projected to show significant growth. The report anticipates HCAR’s earnings to rise to 916 million Rupees, or 6.42 Rupees EPS, a substantial increase from 258 million Rupees, or 1.80 Rupees EPS, recorded in the corresponding period of the previous year. This reflects a 3.6 times year-on-year increase.

The report by AKD Securities Limited underscores the robust performance of the auto sector in Pakistan, driven by increased sales volumes.