Karachi, July 24, 2025 – In a strong start to the fiscal year, Honda Cars has reported a dramatic three-fold increase in its net profit for the quarter ended June 30, 2025, highlighting improved operational efficiency and robust sales performance.
According to the financial results submitted to the Pakistan Stock Exchange (PSX) on Thursday, Honda Atlas Cars (Pakistan) Limited recorded an impressive 309% rise in after-tax profit, reaching Rs828.44 million in the first quarter of FY26. This is a substantial leap from Rs202.63 million in the same quarter of the previous year. The surge pushed earnings per share to Rs5.80 from Rs1.42 in the prior-year quarter.
Despite the profitability jump, the board of directors of Honda Cars decided against declaring any cash dividend, bonus shares, or rights issue in their meeting held on Thursday, July 24, 2025.
A key driver of the improved performance was a sharp increase in sales. The total revenue of Honda Cars jumped to Rs26.46 billion, up from Rs15.97 billion in the same quarter last year. However, this growth was accompanied by higher costs, with the cost of sales increasing to Rs24.19 billion from Rs14.96 billion. Still, gross profit more than doubled to Rs2.27 billion from Rs1.01 billion, reflecting improved margins.
Administrative expenses rose to Rs604 million from Rs392 million, indicating increased operational activity. Additionally, the company paid a significantly higher income tax of Rs632 million compared to Rs123 million last year, in line with the improved earnings.
The remarkable growth in quarterly profit positions Honda Cars as a standout performer in Pakistan’s auto sector amid challenging economic conditions, signaling strong consumer demand and strategic business resilience.