By Honda Atlas Cars (Pakistan) Limited (HCAR) has announced an impressive financial turnaround for the first half of MY26, reporting a profit after tax of Rs. 1,571 million (EPS: Rs. 11.00). This marks a substantial 3.4x year-on-year increase, up from Rs. 460 million in the same period last year—reflecting strong demand, better product mix, and improved operational performance.
On a quarterly basis, the company delivered similarly strong results, with profit rising 2.9x YoY to Rs. 742 million in 2QMY26.
Strong Sales Momentum Fuels Growth
Honda Atlas recorded a notable surge in net sales during 1HMY26, reaching Rs. 51,880 million, a significant 59 percent YoY increase compared to Rs. 32,567 million last year. According to Arif Habib Limited (AHL), this growth was largely driven by a 34 percent YoY boost in total sales volumes, totaling 11,818 units.
Breakdown of volumes:
- Civic & City: 10,168 units
- BR-V & HR-V: 1,650 units
In 2QMY26 alone, net sales hit Rs. 25,418 million, reflecting a 53 percent YoY jump. This growth came primarily from a 46 percent increase in quarterly sales volumes, supported by the successful launch of the HR-V Hybrid in August 2025 and the Honda City 1.5L Aspire S CVT in September 2025.
Margins Strengthen Amid Higher Volumes
Honda Atlas also reported healthy improvements in operational efficiency:
- Gross margins increased to 8.1%, up from 6.9% in 1HMY25.
- In 2QMY26, margins remained steady at 7.4%, indicating stable cost management despite market volatility.
Other Income Surges, but Finance Costs Rise
A standout component of the financials was the dramatic increase in other income, which jumped 483 percent YoY to Rs. 495 million in 2QMY26. This spike was driven by higher cash and bank balances totaling Rs. 1.5 billion.
However, the company also recorded a 63 percent YoY increase in finance costs, reaching Rs. 315 million, mainly due to elevated borrowing levels.
Tax Efficiency Improves
The effective tax rate fell to 33.9 percent in 2QMY26, compared to 39.6 percent in the same quarter last year—further supporting improved profitability.
Honda Atlas’ 1HMY26 financial performance reflects strong market demand, strategic model launches, robust sales growth, and improved operational efficiency. With new hybrids and upgraded models gaining traction, the company appears well-positioned for continued momentum in the coming quarters.
