KARACHI — Indus Motor Company Limited (IMC), the local assembler of Toyota vehicles in Pakistan, posted a sharp increase in earnings for the first quarter of fiscal year 2026, driven by higher vehicle sales and price revisions amid a gradual recovery in the country’s auto sector.
According to financial results submitted to the Pakistan Stock Exchange (PSX) on Tuesday, the company’s profit after tax surged by 32% year-on-year, reaching Rs6.72 billion for the quarter ended September 30, 2025, compared to Rs5.09 billion in the same period last year. This translated into an earnings per share (EPS) of Rs85.49, up from Rs64.77 recorded in the corresponding quarter of FY2024.
The board of directors also announced an interim cash dividend of Rs51 per share, equivalent to 510%, for the quarter reflecting the company’s strong financial position.
IMC’s revenue from customer contracts rose sharply by 48% to Rs61.74 billion, up from Rs41.60 billion a year earlier, largely due to increased vehicle deliveries and price adjustments across its product lineup. The company’s gross profit nearly doubled, climbing 89% to Rs10.54 billion from Rs5.58 billion in the same quarter last year.
On the cost side, distribution, administrative, and other operating expenses collectively rose to Rs1.63 billion, compared to Rs1.30 billion in the previous year an increase of about 25%, driven by inflationary pressures and higher operational activity.
Meanwhile, finance costs declined modestly to Rs49.7 million from Rs61.8 million, while other income dropped to Rs2.90 billion, down from Rs4.46 billion, primarily due to lower returns on bank deposits and investments.
Before accounting for taxes, IMC’s profit before tax stood at Rs11.07 billion, compared to Rs8.25 billion in the same quarter last year. The company’s tax expenses amounted to Rs4.35 billion, marking a 38% increase year-on-year.
Market analysts noted that the company’s improved performance mirrors broader signs of recovery in Pakistan’s automobile industry, as easing import restrictions and a gradual revival in consumer confidence help lift vehicle demand.
Despite ongoing macroeconomic challenges, Indus Motor’s first-quarter results signal renewed momentum for the sector suggesting that Pakistan’s auto market may finally be turning a corner after several difficult years.
