Indus Motor Company Limited (PSX: INDU) reported a strong 17% increase in its profit after taxation for the nine months ended March 31, 2026, clocking in at Rs19.40 billion compared to Rs16.55 billion in the corresponding period last year. Earnings per share (EPS) also rose to Rs246.8 from Rs210.62, showing a similar growth trajectory.
Read More: Asian Markets Climb to Record Highs; Oil Prices Jump Amid Middle East Tensions
The company’s bottom-line expansion was primarily driven by robust top-line growth, supported by improved operating efficiencies despite rising cost pressures. Net revenue surged by 32% year-on-year to Rs191.98 billion, up from Rs145.53 billion last year, indicating strong demand momentum in the automotive segment.
| Metric | 9MFY26 | 9MFY25 | Change |
|---|---|---|---|
| Net Profit | Rs19.40bn | Rs16.55bn | +17% |
| EPS | Rs246.8 | Rs210.62 | +17% |
| Net Revenue | Rs191.98bn | Rs145.53bn | +32% |
| Gross Profit | Rs29.40bn | Rs21.96bn | +34% |
| Operating Result | Rs24.55bn | – | +37% |
| Profit from Operations | Rs22.29bn | – | +36% |
Revenue and Margin Performance
Cost pressures remained evident, as the cost of sales increased by 32% to Rs162.51 billion from Rs123.57 billion. Despite this, gross profit registered a solid 34% rise to Rs29.40 billion, reflecting improved pricing and margin management.
| Expense Category | 9MFY26 | 9MFY25 | Change |
|---|---|---|---|
| Distribution Expenses | Rs1.68bn | Rs1.47bn | +14% |
| Administrative Expenses | Rs2.88bn | Rs2.32bn | +24% |
| Other Operating Expenses | Rs293.91m | Rs250.11m | +18% |
| Total Operating Expenses | Rs4.85bn | Rs4.04bn | +20% |
| Other Income | Rs11.03bn | – | Flat |
| Finance Costs | Rs183.97m | – | +6% |
Operating Performance
On the expense side, operating costs expanded notably. Distribution expenses increased by 14% to Rs1.68 billion, administrative expenses rose sharply by 24% to Rs2.88 billion, while other operating expenses grew by 18% to Rs293.91 million. Consequently, total operating expenses climbed 20% to Rs4.85 billion.
Despite the rise in overheads, the company’s operating result (before WPPF/WWF) jumped 37% to Rs24.55 billion. After accounting for higher workers’ participation and welfare fund charges, profit from operations still recorded a strong 36% increase to Rs22.29 billion.
Non-Operating and Tax Items
Other income remained largely flat, inching up by just 0.5% to Rs11.03 billion, limiting additional support to the bottom line. This led the result before finance cost to rise by 22% to Rs33.32 billion. Finance costs also saw a modest increase of 6% to Rs183.97 million, bringing profit before taxation and levy to Rs33.13 billion, up 22% year-on-year.
A significant turnaround was witnessed at the levy line, which dropped sharply by 94% to Rs2.91 billion compared to Rs45.70 million last year, further supporting earnings growth. As a result, profit before taxation increased by 22% to Rs33.13 billion. However, taxation surged by 29% to Rs13.73 billion, partially diluting the pre-tax gains.
Dividend Announcement
Alongside the results, the company announced a third interim cash dividend of Rs51 per share (510%) , in addition to the cumulative interim payout of Rs97 per share (970%) already distributed, highlighting strong cash generation and shareholder returns.
About Indus Motor Company Limited
Indus Motor Company Limited (PSX: INDU) is a leading Pakistani automotive manufacturer, assembling and selling Toyota-branded vehicles including cars, SUVs, and commercial vehicles. The company is a joint venture between the House of Habib, Toyota Motor Corporation Japan, and Toyota Tsusho Corporation.
