Honda Atlas Car Pakistan reported a profit after tax of Rs. 2.227 billion for the first nine months of MY26, more than double the Rs. 1.027 billion recorded in the same period last year. The company’s 3QMY26 profit reached Rs. 655 million with an EPS of Rs. 4.59, reflecting a 16 percent increase year-on-year but a 12 percent decline quarter-on-quarter, falling short of industry expectations due to lower gross margins and a higher effective tax rate.
Gross margins stood at 7.55 percent in 3QMY26, down from 9.22 percent in 3QMY25 and nearly flat compared to 7.56 percent in 2QMY26. The effective tax rate increased to 45.5 percent in 3QMY26, compared to 43.14 percent last year and 33.86 percent last quarter. Net sales grew 86 percent YoY and 30 percent QoQ to Rs. 33.1 billion, supported by a 92 percent YoY and 47 percent QoQ increase in units sold, reaching 7,159 vehicles.
Distribution expenses rose 3.1 times YoY and 51 percent QoQ to Rs. 451 million due to higher sales volumes. Administrative expenses increased 27 percent YoY but fell 5 percent QoQ, while other charges rose 4.9 times YoY and 23 percent QoQ to Rs. 83 million. Other income surged 97 percent YoY but declined 24 percent QoQ to Rs. 374 million.
For the first nine months of MY26, gross margins averaged 7.88 percent compared to 7.7 percent in 9MMY25, and the effective tax rate was 41.2 percent versus 43.15 percent last year. Honda Atlas Car Pakistan is currently trading at an estimated P/E of 8.5x for MY26 and 8.3x for MY27.
