Honda Atlas Cars Reports Record Sales and Production in FY2026 Amid Tax Refunds and Strategic Inventory Management

Lahore: Honda Atlas Cars (Pakistan) Limited has reported a record increase in sales and production for the financial year ended March 31, 2026. The company's sales volume surged to 25,621 units, marking a 59% increase from the previous year's 16,100 units. Concurrently, production volume rose to 26,430 units, a 70% uplift from 15,545 units in the prior year.

The company disclosed these figures during a corporate briefing session held on July 23, 2026. According to information available from the Pakistan Stock Exchange (PSX), Honda Atlas Cars received historic income tax refunds amounting to PKR 4.2 billion, which significantly bolstered its financial position. Furthermore, the sale of trade debts totaling PKR 7.1 billion improved the company's working capital stance.

The company's strategic focus on inventory management was evident as it increased its inventory of CKD kits, local parts, and materials in transit to ensure continuity in supply and support sales plans for the upcoming fiscal year 2027. This move was aligned with heightened import volumes and advance tax payments to the Federal Board of Revenue.

On June 29, 2026, the Board of Directors approved a dividend of 9.00 rupees per share, which was ratified by shareholders during the 34th Annual General Meeting. Financial performance indicators showed a net revenue increase to PKR 122,283 million, a 57% rise compared to the previous year's PKR 78,066 million. However, the gross profit margin decreased from 9% to 8%.

The profit before tax amounted to PKR 5,088 million, with a profit after tax of PKR 3,234 million. Earnings per share increased to 22.6 rupees from 19.0 rupees. The return on assets experienced a decline, falling to 6% from 11% in the previous year.

Despite strong operational performance, the company's share price decreased by 47%, with the price per share dropping from 289 rupees to 152 rupees. Consequently, the market capitalization also fell by 47%, from PKR 41,269 million to PKR 21,706 million. The designated market category for Honda Atlas Cars remains under scrutiny as it navigates these financial dynamics.