Indus Motor Company Limited reported a profit after tax of Rs. 25.5 billion for fiscal year 2025-26, up 11 percent from Rs. 23 billion a year earlier, according to financial results filed with the Pakistan Stock Exchange (PSX).
However, fourth-quarter profit fell 5 percent year over year to Rs. 6.1 billion, mainly due to weaker gross margins.
The company also announced an interim cash dividend of Rs. 47 per share, taking its total dividend for FY26 to Rs. 195 per share, with a payout ratio of 60 percent.
Net sales increased 20 percent during FY26 to Rs. 258.8 billion as total vehicle volumes reached 44,646 units, up 34 percent year over year. However, fourth quarter sales declined 4 percent year over year and 8 percent quarter over quarter to Rs. 66.8 billion as volumes fell to 11,333 units.
Indus Motor’s annual gross profit increased 16 percent to Rs. 36.3 billion, although the gross profit margin declined to 14 percent in the fourth quarter from 15.5 percent in the previous quarter and 13.3 percent a year earlier. The company’s annual profit before tax rose 14 percent to Rs. 42.8 billion.
The company said in a press release that it sold 45,035 units during FY26, representing 33 percent growth from the previous year, while attributing the stronger performance to recovering market demand and the strength of its brands. It said profitability was also supported by prudent cost management, increased localization and favorable exchange rate fluctuations.
Chairman Mohamed Ali R. Habib said FY26 marked a year of economic stabilization and gradual recovery in Pakistan, while stressing the importance of a stable and predictable policy environment as the automotive industry enters a period of policy transition. He said such an environment would be essential for localization, innovation, technology transfer and sustainable industrial investment.
CEO Ali Asghar Jamali said the company’s growth in unit sales and stronger financial performance reflected the recovery in market demand and the continued strength of its brands. He said IMC would remain focused on operational excellence, innovation, localization and disciplined capital allocation.
Pakistan’s automotive industry also recorded a strong recovery during the year, with PAMA reported passenger car and light commercial vehicle sales rising 39 percent to more than 206,000 units, according to the company.
IMC said improving consumer sentiment, easing financing conditions, product innovation and measures to rationalize used vehicle imports supported the recovery. However, used vehicle imports still accounted for approximately 19 percent of the PAMA market, highlighting the need for consistent policies to strengthen local manufacturing and localization.
IMC also highlighted progress on its sustainability initiatives, saying it had become the first automotive company in Pakistan to complete the plantation of one million trees nationwide. The company also planted 16,000 mangroves along the Sindh coastline, while 85 percent of its dealerships now operate on solar energy and more than 13 percent of local suppliers have shifted to solar power. It said various carbon reduction projects at its manufacturing facility also helped reduce its carbon footprint during the year.
Through its Concern Beyond Cars corporate social responsibility program, IMC invested Rs. 377 million in community initiatives during FY26, benefiting 255,761 people, a 27 percent increase from the previous year.
Finance costs rose 40 percent during FY26 to Rs. 370 million, while the company’s effective tax rate increased to 40.4 percent from 38.9 percent in FY25. Distribution expenses fell to Rs. 1.05 billion during the year from Rs. 2.0 billion previously.
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