Automaker contributes Rs140 billion to Pakistan’s national exchequer in FY2025-26 as profit rises 11% to Rs25.51 billion
KARACHI: Indus Motor Company Limited (IMC) has crossed the Rs1 trillion mark in cumulative tax contributions to Pakistan’s national exchequer since its incorporation in 1989, while posting stronger financial results for fiscal year 2025-26.
The company said it contributed Rs140 billion to the national exchequer during FY2025-26, equivalent to around 1% of the total tax revenue collected by the Government of Pakistan.
Its cumulative contribution since incorporation has now exceeded Rs1,030 billion, underscoring the automaker’s significant contribution to government revenues over more than three decades.
The announcement came as Indus Motor reported a profit after tax of Rs25.51 billion for the year ended June 30, 2026, representing an 11% increase from Rs23.01 billion in the previous fiscal year.
Indus Motor profit rises 11%
According to financial statements submitted to the Pakistan Stock Exchange (PSX), the company’s earnings per share increased to Rs324.50, compared with Rs292.74 a year earlier.
Gross profit rose to Rs36.30 billion in FY2025-26 from Rs31.20 billion in the preceding year.
Meanwhile, expenses declined to Rs5.84 billion, compared with Rs6.11 billion in the previous fiscal year.
Despite the improvement in profitability, the company’s income tax payment also increased significantly during the year.
Indus Motor paid Rs17.30 billion in income tax during FY2025-26, up 19.50% from Rs14.48 billion in the previous year.
Vehicle sales increase 33%
The company’s financial performance was supported by a substantial increase in vehicle sales.
Indus Motor said total sales of completely knocked down (CKD) and completely built-up (CBU) units increased 33% to 45,035 vehicles during FY2025-26, compared with 33,757 units in the previous year.
The company maintained an estimated 14.7% share of Pakistan’s domestic automotive market.
Vehicle production also increased by 37% to 45,597 units, compared with 33,251 units produced in the preceding fiscal year.
Revenue climbs to Rs258.75 billion
Net sales revenue rose sharply to Rs258.75 billion during FY2025-26 from Rs215.14 billion a year earlier.
The company attributed the improvement in revenue and profitability primarily to higher sales volumes, lower material costs supported by a relatively favourable exchange rate, cost-reduction measures and greater localisation of parts and components.
Returns on investments and bank placements also remained a significant contributor to overall profitability.
Indus Motor further said other income benefited from an unrealised gain arising from the remeasurement of its long-term liability relating to the Sindh Infrastructure Development Cess, in accordance with International Financial Reporting Standards (IFRS).
Final dividend of Rs47 per share proposed
The board of directors of Indus Motor Company met on August 29, 2026, and recommended a final cash dividend of Rs47 per ordinary share for the year ended June 30, 2026.
The proposed final dividend is in addition to interim dividends totalling Rs148 per share, taking the total proposed dividend for the year to Rs195 per share, subject to applicable approvals.
The latest results highlight a recovery in automotive sales alongside continued growth in revenue and profitability, while Indus Motor’s cumulative tax contribution has surpassed the Rs1 trillion milestone since the company’s establishment.