Honda Atlas Car Pakistan (HCAR) announced its third-quarter results for MY26, reporting a profit of Rs655 million, or Rs4.59 per share.
This marked a 16% increase compared to the same period last year but a 12% decline from the previous quarter.
The company’s results fell short of industry expectations due to lower-than-anticipated gross margins and a higher effective tax rate.
Gross margins stood at 7.55% in 3QMY26, down from 9.21% in 3QMY25 and nearly flat compared to 7.56% in 2QMY26. Analysts had expected margins around 9%.
HCAR’s effective tax rate rose to 45.5% in the quarter, compared with 43.13% in 3QMY25 and 33.86% in 2QMY26.
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Net sales climbed to Rs33.1 billion, an 86% year-on-year and 30% quarter-on-quarter increase, supported by a 92% YoY and 47% QoQ growth in units sold, totaling 7,159 cars. Distribution expenses rose 3.1 times YoY and 51% QoQ to Rs451 million, primarily due to higher sales volumes.
Administrative expenses increased 27% YoY but decreased 5% QoQ, while other charges surged 4.9 times YoY and 23% QoQ to Rs83 million. Meanwhile, other income rose 97% YoY but fell 24% QoQ to Rs374 million.
For the first nine months of MY26, HCAR reported a profit of Rs2.2 billion, or Rs15.59 per share, more than double the same period last year.
Gross margins were 7.88% compared to 7.69% in 9MMY25, and the effective tax rate stood at 41.19%, down from 43.14% in 9MMY25.
