Lahore: Honda Atlas Cars Pakistan Ltd. (HCAR) announced its financial results for the third quarter of the fiscal year 2026, reporting a profit after tax (PAT) of PkR655 million, marking a 16% increase from the PkR566 million recorded in the same period last year. The earnings reflect an increase in sales volumes, although they fell short of expectations due to increased finance costs and taxation.

According to AKD Securities Limited, the company's revenue surged by 85% year-on-year to PkR33.1 billion, driven by an 89% rise in volumetric sales, reaching 7,198 units compared to 3,804 units in the same period last year. This growth was fueled by the launch of the Honda City facelift and the Hybrid variant of the HR-V. However, the gross margins slightly contracted to 7.5% from 9.2% in the previous year, attributed to the imposition of a carbon levy tax starting July 2025 and a shift in the sales mix toward lower-segment variants.

Operating expenses rose by 71% year-on-year to PkR1.0 billion from PkR0.6 billion, mainly due to the aforementioned increase in sales volumes. The financial results highlight the company's efforts to capitalize on new product launches while managing the challenges of increased costs.