Indus Motor has posted a strong profit of Rs 6.7 billion for the first quarter of FY26, marking a 32% increase compared to Rs 5.09 billion recorded in the same period last year. The company’s earnings per share (EPS) rose to Rs 85.49, reflecting steady growth in profitability.
According to financial data released on October 28, 2025, the company’s strong results were supported by improved margins and efficient cost control. Gross margins for Indus Motor increased to 17.1% in 1QFY26 from 13.4% last year and 13.3% in the previous quarter.
Despite an 11% quarterly decline in sales, higher production volumes and effective expense management helped sustain performance. On a yearly basis, net sales grew 48% to Rs 61.7 billion. Sales of Toyota variants also jumped 61% year-on-year, reaching 9,889 units in the quarter.
The company declared a dividend of Rs 51 per share, translating to a 60% payout ratio. This highlights the management’s confidence in its financial stability and growth outlook.
Distribution expenses increased 5% year-on-year, while administrative costs rose 46%. However, both categories showed improvement compared to the previous quarter. Meanwhile, other income declined 35% YoY and 27% QoQ, mainly due to reduced cash equivalents and lower interest rates.
Indus Motor’s effective tax rate stood at 39% during the period. Analysts from Topline Securities noted that the strong performance was driven by stable demand, cost efficiency, and better pricing strategies.
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Market experts remain positive about Indus Motor’s outlook for FY26 and FY27, citing its robust financials and strong brand positioning. The company continues to lead Pakistan’s auto market with reliable sales of Toyota vehicles and sustained operational performance.
