Lahore: Honda Atlas Cars (Pakistan) Limited has demonstrated a notable financial performance for the half-year ending September 30, 2025, amidst a backdrop of gradual economic stabilization in Pakistan. The company reported significant improvements in both production and sales figures, reflecting a strategic recovery phase for the automobile industry.
On November 27, 2025, the Chairman of Honda Atlas Cars (Pakistan) Limited presented the company’s unaudited condensed interim financial information. The report highlighted the ongoing macroeconomic stabilization in Pakistan, bolstered by fiscal management, monetary discipline, and support from international partners. The International Monetary Fund (IMF) program played a substantial role in restoring macroeconomic balance. However, challenges such as recent floods continued to impact the pace of recovery, with GDP growth projected at 3.5% for the year.
The external sector showed relative stability, with the current account deficit standing at USD 0.62 billion for the first three months of FY26. This was an increase from USD 0.43 billion in the same period last year, largely driven by a widening trade deficit of USD 5.1 billion, up by 6.2%. Home remittances rose to USD 9.5 billion, contributing to maintaining foreign exchange reserves at USD 19.8 billion. Headline inflation eased to 5.6%, and the State Bank of Pakistan kept the policy rate unchanged at 11%. These factors, combined with a historic high of 168,990 points for the PSX 100 Index, boosted investor confidence. According to information available from the Pakistan Stock Exchange (PSX), this growth in the index indicates renewed optimism in the market, despite fiscal collections falling short of targets.
In the agricultural sector, growth is expected to remain moderate at 2.6% for FY26, with increased agricultural credit disbursement and a significant rise in imports of agricultural machinery, signaling renewed investment. Large-Scale Manufacturing (LSM) posted a growth of 4.44% in the first two months of FY26, driven by sectors such as food, apparel, and non-metallic minerals. The automobile industry, in particular, showed encouraging signs with increased production volumes and improved market sentiment.
The automobile industry, despite initial setbacks from logistical disruptions and geopolitical tensions, rebounded strongly in September 2025, marking a significant increase in sales. New model launches, including Honda’s latest Hybrid Electric Vehicle (e:HEV) and petrol variants, contributed to this recovery. Overall industry production rose to 93,095 units from 59,146 units, with car sales improving to 89,422 units compared to 62,297 units in the previous year. Honda Atlas Cars produced 11,353 units and sold 10,403 units, both showing notable increases from the corresponding period last year.
Financially, Honda Atlas Cars reported net sales of PKR 51,880 million, up from PKR 32,567 million in the previous year. Gross profit increased to PKR 4,195 million, and the company posted a profit before tax of PKR 2,583 million, a significant rise from PKR 691 million last year. Net profit for the period escalated to PKR 1,571 million, with earnings per share improving to PKR 11.00 from PKR 3.22.
The economic outlook suggests moderate growth, supported by fiscal discipline and adherence to the IMF program. The company’s future strategy focuses on navigating evolving market conditions while maintaining its market position and enhancing stakeholder value. Honda Atlas Cars remains committed to its long-term strategy, leveraging the “Honda Philosophy” as a guiding principle.