AsiaNet-Pakistan Premier Editorial Content and Press Release Distribution Service
Lahore: Honda Atlas Cars Pakistan Limited has reported a notable increase in its first-quarter earnings for the fiscal year 2026, attributing the rise to increased sales volumes and improved cost efficiencies. The company’s profit after tax reached PkR828 million, or PkR5.8 per share, compared to PkR203 million, or PkR1.4 per share, during the same period last year.
The company’s revenue surged to PkR26.5 billion, marking a 66% year-on-year increase. This growth was primarily driven by the sale of 5,520 units in the quarter, a significant rise from 3,285 units sold in the first quarter of the previous year.
Gross margins improved to 8.6% from 6.3% in the same period last year. This improvement is attributed to an 11.8% year-on-year decrease in the prices of cold-rolled and hot-rolled coils, key materials in automotive manufacturing.
However, the company’s administrative and distribution expenses rose by 46% year-on-year to PkR954 million. This increase is possibly due to heightened advertising and promotion spending on new HRV variants.
Honda Atlas also experienced a substantial rise in other income, which soared by 61% to PkR553 million. The increase is largely due to a significant rise in cash and cash equivalents, which stood at PkR5.0 billion as of June 2025.
Financial charges saw a decline of 29% year-on-year, falling to PkR203 million. This decrease is associated with lower financing rates and reduced short-term borrowings amid easing working capital requirements.
AKD Securities Limited, the source of the financial analysis, maintains a ‘BUY’ recommendation for Honda Atlas shares, with a target price of PkR451 by December 2025. The recommendation is supported by the company’s improving gross margins and rising sales volumes.