January 27, 2026 (MLN): Honda Atlas Cars (Pakistan) Limited (PSX: HCAR) reported a strong turnaround, posting a profit after taxation of Rs2.23bn for the nine months ended December 31, 2025, up 116.8% YoY compared to Rs1.03bn in the same period last year.

Earnings per share (EPS) surged to Rs15.59, more than doubling from Rs7.19 in 9MFY25, showing a sharp recovery in profitability.

Net sales jumped 68.6% YoY to Rs84.98bn from Rs50.41bn, driven by significantly higher vehicle sales volumes amid improving demand conditions.

Despite a 68.2% increase in cost of sales to Rs78.29bn, the sharp topline growth translated into a gross profit of Rs6.69bn, up 72.7% YoY from Rs3.88bn in 9MFY25.

On the expense side, distribution and marketing costs rose 87.0% YoY to Rs1.10bn, while administrative expenses increased 39.8% to Rs1.80bn, showing higher operational activity and inflationary pressures.

Consequently, total operating expenses climbed 40.5% YoY to Rs2.91bn.

Other income surged 129.8% YoY to Rs1.42bn, providing a meaningful boost to earnings, while other expenses rose sharply to Rs359.7m from Rs117.7m.

Finance costs also increased 54.0% YoY to Rs1.07bn, mainly due to higher borrowing levels.

As a result, profit before levy and taxation more than doubled to Rs3.79bn, up 109.6% YoY.

With no levy charge in the current period (compared to Rs10.1m last year), profit before taxation stood at Rs3.79bn, marking a 110.8% YoY increase.

Taxation expense rose 102.8% YoY to Rs1.56bn, in line with higher profitability.

After accounting for taxes, the company closed 9MFY26 with a net profit of Rs2.23bn, compared to Rs1.03bn in the corresponding period last year.

Overall, HCAR’s earnings growth was driven by robust sales recovery, strong gross profit expansion, and a sharp rise in other income, partially offset by higher operating expenses, finance costs, and taxation.

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