Toyota Indus Motors’ Posts Massive Rs 6.7 Billion Profit in 1QFY26

Indus Motor Company (INDU) has reported a robust profit of Rs. 6.7 billion for the first quarter of FY26, marking a 32% year-on-year increase compared to the Rs. 5.09 billion profit recorded in the same period last year. The company’s earnings per share (EPS) stood at Rs. 85.49, up 32% from the same period last year, according to its latest financial results released on October 28, 2025. The strong profit performance was driven by higher-than-expected gross margins, which reached 17.1% in 1QFY26, compared to 13.4% in 1QFY25 and 13.3% in the previous quarter, according to Topline Securities. This improvement came despite an 11% decline in net sales quarter-on-quarter, as the company benefited from increased volumes and better cost management. Net sales surged 48% year-on-year to Rs. 61.7 billion, while sales of Toyota variants jumped 61% YoY, with 9,889 units sold in the quarter. The company also announced a dividend of Rs. 51 per share, reflecting a payout ratio of 60%. Distribution expenses rose 5% YoY, while administrative expenses increased 46% YoY but fell 33% compared to the previous quarter. Other income dropped 35% YoY and 27% QoQ due to lower cash equivalents and reduced interest rates. Indus Motor’s effective tax rate for the quarter stood at 39%. The company’s strong results have led analysts to maintain a positive outlook, with the stock trading at an attractive price-to-earnings ratio for FY26 and FY27.