Honda Atlas profit increases, amid car sales recovery in Pakistan
Honda Atlas Cars reports that they saw an increase in profits for the Fiscal Year MY26. The company’s performance was enhanced by a rise in unit sales and an improvement in the gross margin.
Honda Atlas Cars (Pakistan) Limited recently shared the profit after tax of Rs828 million in 1QMY26, marking the year-on-year growth of 310%, with profits soaring compared to Rs. 202.6 million recorded during the same period last year. The company’s overall share also saw a boost, reaching Rs. 5.80.
During the quarter, Honda Atlas reported net sales of Rs26,462 million, marking a solid 66% increase compared to Rs15,970 million in the same period last year. This impressive growth was driven largely by a surge in vehicle volumes, which rose 5.5 times to reach 5,682 units. The popular Civic and City models made up the bulk of the sales with 5,154 units, while the BR-V and HR-V contributed another 366 units.
However, when compared to the previous quarter, net sales saw a slight dip of 4%, mainly due to a 3% drop in sales volume. This decline is being linked to an unusually high sales spike in January, which set a tough benchmark for the following months.
Gross Margins Climb Annually, Slip Compared to Previous Quarter:
The company’s gross margin increased to 8.6 percent in 1QMY26, compared to 6.33 percent in 1QMY25, supported by falling CRC prices. However, this was a slight step down from the 10.1% margin recorded in the fourth quarter of MY25, indicating a modest dip in profitability compared to the previous quarter.
Honda Atlas’s latest quarterly results reflect a strong performance backed by rising demand and effective cost management.
Distribution expenses rose by 35% year-on-year, reaching Rs350 million, driven by increased sales activity. However, on a quarterly basis, these expenses fell by 36%, showing improved efficiency in the short term.
Administrative costs also saw a 54% jump year-on-year, but remained steady compared to the previous quarter, indicating controlled spending despite inflationary pressures.
Other income was another bright spot, climbing 61% year-on-year and 49% quarter-on-quarter to hit Rs553 million, adding a healthy boost to the company’s bottom line.
Meanwhile, finance costs dropped by 29%, thanks to lower debt levels and a decline in interest rates—both contributing to improved financial stability.
The effective tax rate for the quarter came in at 43.29%, slightly lower than the 47.14% reported in the first quarter of MY25.
Overall, Honda Atlas delivered a solid quarterly performance, fueled by strong unit sales and tighter cost controls—clear signs of the company’s ability to adapt and grow in a recovering auto market.
