KARACHI: Honda Atlas Cars (Pakistan) Limited (HCAR) has announced a spectacular financial performance for the first half of the fiscal year 2026, reporting a profit after tax of Rs. 1.57 billion. This represents a massive 241% increase compared to the Rs. 460.36 million earned in the same period last year, signaling a powerful recovery in consumer demand for automobiles.
Earnings per share (EPS) surged to Rs. 11, up from Rs. 3.22 in the prior year. The stellar growth was anchored by an exceptional 59% year-on-year jump in revenue, which climbed to Rs. 51.88 billion. The company demonstrated enhanced operational efficiency as gross profit expanded by 88% to Rs. 4.20 billion, with the gross margin improving to 8.1% from 6.9%.
A significant 144% increase in other income, which rose to Rs. 1.05 billion, provided a substantial boost to the bottom line. This, coupled with the absence of a levy that had been imposed in the previous year, helped offset rises in distribution, administrative, and finance costs. Consequently, the profit before taxation skyrocketed 274% to Rs. 2.58 billion.
Although taxation charges increased in line with the higher profitability, the company’s net profit margin still expanded to 3.0%, up from 1.4% in the first half of the last fiscal year. The results underscore a period of strong operational momentum for HCAR, driven by effective cost management and a favorable market reception of its products, positioning it as a key beneficiary of the ongoing resurgence in Pakistan’s auto sector.
