Karachi, February 20, 2026 – Indus Motor Company Limited (INDU) announced its financial results for the second quarter of FY26 (2QFY26), posting a Profit After Tax (PAT) of PKR 5.98 billion (EPS: PKR 76.11), reflecting a 23% year-on-year (YoY) increase compared to PKR 4.87 billion (EPS: PKR 61.92) in the same period last year. On a cumulative basis, 1HFY26 PAT reached PKR 12.7 billion (EPS: PKR 161.60), marking a 28% YoY growth and the highest half-yearly profit since 2014.
The company declared a cash dividend of PKR 46 per share for 2QFY26, taking the 1HFY26 cumulative payout to PKR 97 per share.
Financial Highlights – 2QFY26 and 1HFY26
| Metric | 2QFY26 | SPLY (2QFY25) | 1HFY26 | 1HFY25 | YoY Growth (1HFY) |
| PAT (PKR mn) | 5,982 | 4,867 | 12,701 | 9,957 | +28% |
| EPS (PKR) | 76.11 | 61.92 | 161.60 | 126.69 | +28% |
| Net Sales (PKR mn) | 57,458 | 42,376 | 119,196 | 85,243 | +40% |
| Units Sold | 10,674 | 6,395 | – | – | +67% |
| Gross Margin | 13.1% | 14.1% | 15.2% | 13.8% | +1.4% |
| Other Income (PKR mn) | 5,317 | 3,727 | – | – | +43% |
| Finance Cost (PKR mn) | 82 | 38 | 132 | 100 | – |
| Effective Tax Rate | 39.3% | 40% | 41% | 39.4% | – |
The revenue growth was driven primarily by higher volumetric sales, with Yaris, Corolla, and Corolla Cross accounting for 9,094 units, and Fortuner and Hilux contributing 1,580 units in 2QFY26. Despite strong topline growth, gross margins contracted to 13.1% in the quarter, down from 14.1% in SPLY, mainly due to a higher proportion of lower-priced variants in the sales mix.
Other income increased by 43% YoY to PKR 5.32 billion, attributed to higher cash reserves. Finance costs rose to PKR 82 million during 2QFY26. The effective tax rate stood at 39.3% in the quarter and 41% for 1HFY26.
Brokerage houses have maintained a “BUY” recommendation on INDU, with the stock trading at FY26 and FY27 multiples of 6.1x and 5.8x, respectively. Analysts note that while the quarterly result slightly lagged expectations due to lower-than-estimated gross margins, the strong half-year performance reflects solid operational growth and market demand.