The profitability of automobile companies listed on the KSE-100 Index rose 39.2% year-on-year to Rs28.4 billion in the quarter ended June 2026, driven by higher vehicle sales, the introduction of new models and increased availability of auto financing.
According to a research report by Arif Habib Limited, the sector’s combined revenue grew 33.7% to Rs310.9 billion, while gross profit increased 29% to Rs46.9 billion. The industry recorded a gross margin of 15.1% and a net margin of 9.1% during the quarter.
Sales of passenger cars, light commercial vehicles and 4x4s climbed 32.4% year-on-year to 62,416 units, up from 47,155 in the corresponding period of 2025. Rising access to vehicle financing also contributed to demand. Outstanding auto loans reached Rs381.69 billion by the end of June 2026, up 38% from Rs277 billion a year earlier.
Other income across the sector increased 53.5% to Rs11.4 billion, largely reflecting one-off gains linked to the Sindh Infrastructure Development Cess and improved returns on cash holdings.
Sazgar Engineering Works Limited recorded the strongest earnings growth among the companies covered, with quarterly profit surging 150.6% to Rs8.7 billion. Its revenue jumped 180.7%, helped by more than doubling four-wheeler sales to 6,549 units and deliveries of the Tank 500.
Atlas Honda posted a 25.2% increase in earnings to Rs6 billion, while Honda Atlas Cars’ profit nearly tripled to Rs2.5 billion. Millat Tractors recorded a 36.3% rise in earnings to Rs1.8 billion, supported by a 42.4% increase in sales volumes.
In contrast, Indus Motor Company’s profit declined 5.4% to Rs6.1 billion amid weaker revenue and intensifying competition. Ghandhara Automobiles reported a 14.6% drop in consolidated profit to Rs1.6 billion, while Ghandhara Industries’ earnings remained largely stable at Rs1.7 billion.
Across the wider automobile market, tractor sales rose 42.6% to 8,499 units, while truck sales increased 37.2% to 2,561 units. Two-wheeler sales also grew 27.4%, reaching 530,481 units during the quarter.
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