Pakistan Auto Sector Poised for Profit Surge Amid Higher Volumes

KARACHI: The Pakistani automotive industry is poised for significant profitability growth, driven by increased sales volumes, according to a preview of the financial results for the fourth quarter of fiscal year 2025 by AKD Securities Limited.

Earnings for the AKD auto universe are projected to reach PKR 9.5 billion in 4QFY25, marking a 61% increase compared to the same period last year. This substantial rise is attributed to higher sales volumes across the sector.

Indus Motor Company (INDU) is expected to report earnings of PKR 8.2 billion, translating to earnings per share (EPS) of PKR 104.7, up from PKR 5.7 billion (EPS: PKR 72.1) in the corresponding period of the previous year. This reflects a 45% year-over-year increase in profitability for the company.

Honda Atlas Cars (HCAR) is anticipated to record earnings of PKR 1.2 billion with an EPS of PKR 8.6, a significant leap from PKR 203 million (EPS: PKR 1.42) in the same period last year. This represents a sixfold increase in earnings year-over-year.

AKD Securities Limited has updated its target prices for INDU and HCAR, setting them at PKR 3,585 per share and PKR 451 per share, respectively, for June 2026.

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