Toyota’s local partner in Pakistan reports a 10% year-on-year increase in quarterly earnings, supported by higher sales volumes, and announces a cash dividend of Rs56 per share.

Karachi, October 28, 2026: Indus Motor Company Limited (PSX: INDU), Toyota’s local partner in Pakistan, has reported a profit after tax of Rs7.4 billion for the first quarter of the financial year 2026-27 (1QFY27), exceeding analysts’ expectations.

According to analysts at Insight Securities Limited, the company’s earnings per share (EPS) stood at Rs94.0, compared with Rs85.5 in the same period last year, when profit after tax was Rs6.7 billion. The stronger-than-expected result was primarily driven by higher-than-estimated gross margins.

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Indus Motor’s revenue increased by approximately 20% year-on-year and 11% quarter-on-quarter to Rs74.0 billion during 1QFY27, mainly due to higher vehicle sales volumes.

However, gross margins declined to around 15.3%, compared with 17.1% in the corresponding quarter last year, representing a decrease of approximately 180 basis points. Analysts attributed the possible decline to a higher proportion of imported manufactured vehicles (IMVs) in 1QFY26.

The company’s other income fell by 34% quarter-on-quarter to Rs3.2 billion. Insight Securities said the decline primarily reflected a remeasurement gain booked against the SIDC payable in the fourth quarter of FY26.

Indus Motor’s effective tax rate stood at approximately 38%, compared with 39% in 1QFY26 and 37% in 4QFY26.

Alongside its quarterly results, the company announced a cash dividend of Rs56 per share, providing an additional return to shareholders.

The results highlight improved earnings and revenue growth despite pressure on gross margins.