Honda Atlas Cars (Pakistan) Limited (HCAR) has delivered a remarkable financial performance in the first quarter of fiscal year 2026 (1QMY26), posting a profit after tax (PAT) of Rs. 828 million—an impressive 310 percent year-on-year increase compared to Rs. 202.6 million in the same period last year. The company reported earnings per share (EPS) of Rs. 5.80. Net sales climbed to Rs. 26.46 billion from Rs. 15.97 billion in 1QMY25, marking a 66 percent year-on-year jump, driven by a fivefold increase in unit sales. Honda sold 5,682 units this quarter, including 5,154 units of Civic and City models and 366 units of BR-V and HR-V.
Despite a 4 percent quarter-on-quarter dip in topline revenue, largely attributed to a high base in January, gross margins improved to 8.6 percent from 6.33 percent a year ago. However, they dipped slightly from 10.1 percent in 4QMY25 due to changing market dynamics. Distribution expenses rose by 35 percent year-on-year, while administrative expenses surged by 54 percent. Other income also saw a notable 61 percent rise year-on-year, reaching Rs. 553 million. Finance costs declined 29 percent, owing to lower debt levels and falling interest rates. The effective tax rate stood at 43.29 percent, down slightly from 47.14 percent in the corresponding quarter last year. Overall, Honda Pakistan’s financials reflect a strong recovery driven by increased sales and improved cost efficiency.
