Karachi: Indus Motor Company (INDU) reported its financial results for the fourth quarter of fiscal year 2026, revealing a profit of Rs6.1 billion and an earnings per share (EPS) of Rs76.73, marking a decline of 5% year-on-year and 9% quarter-on-quarter. The company's results fell short of expectations primarily due to lower-than-anticipated gross margins, although the dividend payout aligned with market predictions.

According to JS Global, the company's full-year 2026 earnings amounted to Rs25.5 billion, reflecting an 11% increase from the previous fiscal year's profit of Rs23 billion. The full-year EPS rose to Rs324.50 from Rs292.74 in fiscal year 2025. Indus Motor also announced an interim cash dividend of Rs47 per share, bringing the total dividend for the fiscal year to Rs195 per share, with a payout ratio of 60%.

The company's gross profit margins for the fourth quarter stood at 10.3%, down from 13.3% in the same quarter last year and 15.5% in the previous quarter. This decline contributed to the overall fiscal year 2026 gross profit margins of 14%, compared to 14.5% in fiscal year 2025. Net sales for the quarter decreased by 4% year-on-year and 8% quarter-on-quarter to Rs66.7 billion, attributed to a fall in units sold, reaching 11,333 units.

Despite the quarterly dip, full-year net sales increased by 20% year-on-year to Rs258.8 billion, driven by a 34% rise in total volumes, with 44,646 units sold. Distribution expenses recorded a negative Rs625 million in the fourth quarter, a shift from Rs797 million in the same quarter last year. The effective tax rate for the quarter was 37%, slightly lower than the previous year's 38.2%.

Indus Motor is currently trading at a forward price-to-earnings ratio of 5.2x for fiscal year 2027, with a dividend yield of 11.6%.