Indus Motor Company Reports Strong Earnings Boosted by Improved Margins

Karachi: Indus Motor Company Limited (INDU) reported a significant increase in its first-quarter fiscal year 2026 earnings, posting a profit after tax (PAT) of PKR 6.7 billion, compared to PKR 5.1 billion in the same period last year. The company’s earnings per share (EPS) rose from PKR 64.8 to PKR 85.5, marking a 32% year-on-year growth. This growth was driven by a rise in sales volumes and improved profit margins, surpassing analysts’ expectations.

Revenue for the quarter reached PKR 61.7 billion, up 48% from PKR 41.6 billion in the same quarter of the previous fiscal year. This increase was largely due to a 61% rise in sales volumes, with 9,889 units sold compared to 6,160 units in the prior year. The surge in sales was attributed to the successful launch of a facelift of the Yaris model and increased sales of the IMV series.

Gross margins improved to 17.1%, compared to 13.4% in the same period last year. This improvement was attributed to higher sales volumes, a 3.4% decline in cold rolled and hot rolled coil prices, and the appreciation of the Pakistani Rupee.

However, operating expenses rose by 24% year-on-year, a rise mainly due to higher sales volumes during the period.

The company reported a decrease in other income, which fell by 35% to PKR 2.9 billion from PKR 4.5 billion in the previous year. This decline was linked to lower interest rates.

Indus Motor Company also announced an interim cash dividend of PKR 51.0 per share, reflecting the robust performance in the first quarter.