Honda Atlas Cars (Pakistan) Limited has announced its financial results for the first quarter ended June 30, 2026, reporting a profit after tax of Rs828.44 million, reflecting a challenging operating environment marked by higher finance costs and a one-time levy despite robust revenue growth. The company’s board approved the unaudited financial statements during its meeting held on July 29, 2026, and did not announce any cash dividend, bonus shares, or right shares.
During the quarter, Honda Atlas generated net sales of Rs37.20 billion, a significant increase from Rs26.46 billion recorded in the corresponding period last year. Gross profit also improved to Rs2.87 billion, compared with Rs2.27 billion a year earlier, supported by stronger sales volumes.
However, profitability came under pressure from rising finance costs, which climbed to Rs631.09 million from Rs202.64 million in the same quarter last year. The company also recorded a levy expense of Rs109.45 million, impacting its bottom line. Consequently, profit before tax stood at Rs1.46 billion, while profit after tax settled at Rs828.44 million. Earnings per share (EPS) for the quarter were reported at Rs17.41.
A notable contributor to the quarter’s performance was a sharp increase in other income, which reached Rs2.09 billion. The company disclosed that this primarily resulted from a settlement agreement with the Government of Sindh regarding an outstanding SIDC liability. Under the agreement, Honda Atlas will settle 45% of the liability by July 2027, while the remaining amount will be paid in 48 quarterly installments. The present value adjustment on the liability generated a discounting gain of approximately Rs1.59 billion, which was recognized as other income during the quarter.
On the financial position side, the company reported total assets of Rs54.30 billion as of June 30, 2026, compared with Rs59.11 billion at the end of March 2026. Cash and bank balances improved significantly to Rs2.24 billion from Rs757.67 million, while inventories declined to Rs24.66 billion, indicating improved working capital management.
The board also confirmed that no cash dividend, bonus issue, right shares, or any other corporate action has been recommended for the first quarter.
Despite facing increased financing costs and additional tax-related charges, Honda Atlas delivered healthy revenue growth during the quarter. The company’s improved liquidity position and the settlement of a longstanding liability are expected to strengthen its financial footing as it navigates evolving market conditions in the remainder of FY2026.
