Indus Motor Company Limited (IMC) has reported a solid financial performance for the nine months ended March 31, 2026, with higher sales, improved profitability and a fresh interim cash dividend for shareholders.
According to the company’s financial statements, net sales climbed to Rs191.98 billion during the nine-month period, compared with Rs145.53 billion in the same period last year. This represents an increase of around 32%, reflecting stronger business activity and improved demand for locally manufactured vehicles.
Profitability improves
The company’s bottom line also showed meaningful improvement. Profit after tax rose to Rs19.40 billion for the nine months ended March 31, 2026, from Rs16.55 billion a year earlier.
This translated into earnings per share (EPS) of Rs246.80, compared with Rs210.62 in the corresponding period last year.
The improvement was supported by a stronger gross profit, which increased to Rs29.40 billion from Rs21.96 billion. The company attributed the better profitability to higher vehicle volumes, favorable exchange-rate movements, cost optimization initiatives and increased localization efforts.
Third-quarter performance remains steady
For the quarter ended March 31, 2026, IMC posted revenue of Rs72.78 billion, up from Rs60.65 billion in the same quarter last year.
Quarterly profit after tax stood at Rs6.70 billion, compared with Rs6.60 billion a year earlier. EPS for the quarter was Rs85.21, versus Rs83.93 in the corresponding period.
While quarterly earnings growth was relatively modest, the figures show that the company maintained its profitability despite a challenging operating environment.
Rs51 per share dividend announced
Alongside the financial results, IMC’s Board of Directors recommended a third interim cash dividend of Rs51 per share, equivalent to 510%.
The company said this dividend is in addition to the combined interim cash dividend of Rs97 per share, or 970%, that had already been paid.
The dividend announcement highlights the company’s continued ability to return cash to shareholders while maintaining a strong financial position.
Automobile sector sees gradual recovery
In its directors’ report, the company noted that Pakistan’s automobile industry continued its recovery during the nine months of FY2025-26. Improving macroeconomic conditions, lower auto-financing costs and increased availability of locally manufactured vehicles supported the sector.
The company also highlighted continued demand for its locally produced models, with the Toyota Corolla and Yaris benefiting from their established position in the market and recent model enhancements.
Outlook remains positive but cautious
Looking ahead, Indus Motor expects demand for locally manufactured vehicles to continue improving as macroeconomic conditions stabilize, financing costs remain manageable and inflation stays under control.
However, the company remains cautious about external risks. Rising global oil prices, Middle East tensions, higher industrial costs and pressure on foreign-exchange reserves could create challenges for Pakistan’s automotive sector.
The company has also called for measures to make vehicle financing more accessible, including relaxation of restrictions on auto financing of up to Rs3 million and steps to improve vehicle affordability.
Stronger financial position
IMC ended the period with total assets of Rs175.33 billion, while cash and cash equivalents stood at approximately Rs34.26 billion at March 31, 2026.
Overall, the nine-month results point to a stronger year for Indus Motor, with significant growth in revenue and profitability and a substantial dividend payout. The company’s performance will now depend on how quickly automobile demand continues to recover and whether economic and external pressures remain manageable.
In short, Indus Motor has entered the final quarter of FY2025-26 on a stronger footing, combining higher sales and earnings with a generous return to shareholders.
