Indus Motor Company Limited reported a strong financial performance in the first half of FY26, posting a Profit After Tax of Rs. 12.70 billion, or earnings per share of Rs. 161.60, marking a 28 percent year-on-year increase from Rs. 9.96 billion (EPS: Rs. 126.69) in the same period last year. This represents the company’s highest half-yearly profit since 2014.
In the second quarter, the company recorded a PAT of Rs. 5.98 billion with an EPS of Rs. 76.11, up 23 percent compared to Rs. 4.87 billion (EPS: Rs. 61.92) in 2QFY25. Net sales for 1HFY26 reached Rs. 119.20 billion, up 40 percent year-on-year, while second-quarter net sales rose to Rs. 57.46 billion, reflecting a 36 percent increase. Volume growth was a key driver, with total sales of 10,674 units in 2QFY26, including 9,094 units of Yaris, Corolla, and Corolla Cross, and 1,580 units of Fortuner and Hilux.
Gross margins improved to 15.2 percent for 1HFY26 from 13.8 percent last year, though 2QFY26 margins eased to 13.1 percent due to a higher mix of lower-priced variants. Other income rose 43 percent year-on-year to Rs. 5.32 billion, supported by higher cash balances. Finance costs increased to Rs. 82 million in 2QFY26 from Rs. 38 million last year, with 1HFY26 costs totaling Rs. 132 million compared to Rs. 100 million previously. The effective tax rate was 39.3 percent in 2QFY26, slightly lower than last year, while cumulative 1HFY26 tax stood at 41.0 percent.
Based on this performance, analysts maintain a positive outlook and recommend buying the stock. Indus Motor Company trades at FY26 and FY27 price-to-earnings multiples of 6.1x and 5.8x. The company also declared a cash dividend of Rs. 46 per share for the second quarter, bringing total dividend payouts for 1HFY26 to Rs. 97 per share.
