Honda Atlas Cars Posts a Shocking 242% Increase in Profits

Honda Atlas Cars (Pakistan) Limited (HCAR) announced its financial results for 1HMY26 on Wednesday, posting a profit after tax of Rs. 1,571 million (EPS: Rs. 11.00), reflecting a 3.4x year-on-year increase as compared to Rs. 460 million recorded in the same period last year. On a quarterly basis, the company recorded a 2.9x YoY rise to Rs. 742 million in 2QMY26. Net sales during 1HMY26 stood at Rs. 51,880 million, compared to Rs. 32,567 million, showing a 59 percent YoY increase. According to Arif Habib Limited (AHL), this was mainly driven by a 34 percent YoY rise in total volumes to 11,818 units (Civic & City: 10,168 units; BR-V & HR-V: 1,650 units). Sales in 2QMY26 came in at Rs. 25,418 million versus Rs. 16,519 million in the same period last year, marking 53 percent YoY growth, supported primarily by a 46 percent YoY increase in volumes following the launch of the HR-V Hybrid in August 2025 and the Honda City 1.5L Aspire S CVT in September 2025. Gross margins improved to 8.1 percent from 6.9 percent in 1HMY25. On a quarterly basis, margins remained stable at 7.4 percent in 2QMY26. Other income surged 483 percent YoY in 2QMY26 to Rs. 495 million, owing to higher cash and bank balances, which stood at Rs. 1.5 billion. Finance cost increased 63 percent YoY to Rs. 315 million due to higher borrowings. The effective tax rate was 33.9 percent in 2QMY26, compared to 39.6 percent in 2QMY25.