Karachi: Hinopak Motors has released its first quarterly report for 2026, revealing a decline in both sales revenue and profit after tax for the quarter ending June 30, 2026. The report, dated July 30, 2026, indicates a challenging period for the company despite an overall increase in the country's commercial vehicle market.

The total sales of commercial vehicles across Pakistan reached 2,636 units during the April to June 2026 quarter, marking a significant increase of 37% compared to the same period last year. However, Hinopak's sales volume for trucks and buses declined to 156 units, down from 180 units in the corresponding quarter of the previous year.

The company's sales revenue decreased to Rs. 3.28 billion from Rs. 3.96 billion in the same quarter last year, resulting in a moderate move of -17%. Correspondingly, gross profit fell to Rs. 544.44 million, down from Rs. 845.56 million.

According to information available from the Pakistan Stock Exchange (PSX), Hinopak's finance cost for the current quarter saw a substantial decrease to Rs. 71.34 million, compared to Rs. 146.72 million in the same quarter last year. The primary expense within finance costs was the mark-up on short-term borrowings, amounting to Rs. 65.31 million.

Profit after tax for Hinopak stood at Rs. 209.69 million, a significant move down from Rs. 416.82 million in the corresponding quarter last year. This equated to earnings per share of Rs. 8.45, compared to Rs. 16.81 in the same period last year.

The Directors' Report cited improvements in economic activity, supported by moderating inflation, improved liquidity conditions, and relative stability in the exchange rate as positive influences on the commercial vehicle market's performance. However, challenges such as elevated energy prices, market volatility, and supply chain disruptions due to geopolitical developments remain a concern.

Hinopak expressed cautious optimism for the future, with a focus on cost optimization, operational efficiency, and prudent financial management to drive sustainable growth and create long-term value for its stakeholders. The company acknowledged the steadfast support of its parent companies, the trust of its customers, and the dedication of its team during this period.