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Honda Atlas Profits Jump 117% as New HRV Hybrid Drives Sales

Carr.pk
Carr.pk
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Honda Atlas Profits Jump 117% as New HRV Hybrid Drives Sales - Carr.pk

Honda Atlas Cars (Pakistan) Limited (HCAR) has posted a massive recovery in its latest financial report for 9-Month period of Market Year 2026 (9MMY26), that runs from April to March (for Honda Atlas).

The company’s profit after tax skyrocketed to PKR 2.22 billion, a 117% increase from PKR 1.02 billion recorded in the same period last year.

  • Honda HRV Hybrid: Launched in August 2025, capturing the growing demand for fuel-efficient crossovers.
  • Honda City 1.5L Aspire S CVT: Introduced in September 2025, revitalizing interest in the sedan segment.

While sales are booming, Honda is navigating a complex financial landscape:

  • Exchange Rate Wins: A stronger PKR against the Japanese Yen helped keep gross margins stable at 7.9%.
  • Marketing Spend: Distribution expenses jumped 3x due to aggressive nationwide promotion of the new models.
  • Debt Pressure: Finance costs surged by 157% as the company increased borrowings to PKR 14.3 billion to sustain operations.

Heavy taxation remains a hurdle for the local automotive industry. Honda’s effective tax rate hit 43.1% this quarter. Despite this, the Earnings Per Share (EPS) doubled to PKR 15.59, signaling strong confidence from the market and shareholders.

Honda Atlas has successfully regained its footing by embracing hybrid technology. The focus now shifts to whether the company can maintain this momentum while managing high debt costs and heavy taxation in the coming months.

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