Karachi: Indus Motor Company Ltd. (INDU) reported a modest rise in net profit for the third quarter of fiscal year 2026, with figures showing a 2% year-on-year increase driven by higher volumetric sales. The company disclosed a net profit after tax (NPAT) of PKR 6.7 billion, translating to earnings per share (EPS) of PKR 85.2, compared to PKR 6.6 billion (EPS: PKR 83.9) in the same period last year.
According to AKD Securities Limited, the increased profitability aligns with market expectations and is primarily attributed to a significant rise in sales volumes, which soared by 40% to 12,750 units from 9,077 units in the corresponding period of the previous year. This sales boost contributed to a 20% year-on-year increase in revenue, which reached PKR 72.8 billion during the third quarter, compared to PKR 60.7 billion in the previous year.
Indus Motor's gross margins, however, saw a decline, contracting to 15.5% from 16.9% in the same quarter last year, largely due to a higher proportion of mid-segment sedans in the sales mix. Despite the increased sales volume, the company's operating expenses remained stable year-on-year at PKR 1.4 billion. The company also announced an interim cash dividend of PKR 51.0 per share, bringing the total cash payout for the first nine months of fiscal year 2026 to PKR 148.0 per share.
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