Honda Atlas Cars (Pakistan) Limited reported earnings per share of PKR 22.64 in MY26 against earnings per share of PKR 18.97 in MY25 an increase of 19%. Net revenue in MY26 reached PKR 122.3 Bn, a rise of 57% compared to MY25 with PKR 78.1 Bn. The company saw its gross margin decrease from 9% in MY25 to 8% in MY26.
The company’s bestselling model, City, has a sales mix of 85:15 between 1.2L and 1.5L respectively. Within its overall sales mix 15% is attributable to the Civic and HR-V with the remainder to City. The company has recently discontinued the BR-V. With regards to future model releases, it was apprised that the company is working on plans however no details were given. It was also not clarified whether this new launch would be a facelift of an existing model or the addition of an entirely new model to the lineup.
Management also highlighted that margins have remained constrained due to appreciation of the Thai Baht against US dollar which is expected to reverse given the consequent depreciation of the Thai Baht. We expect margins to recover to the previous range of 9-10% as a result of this movement.
Management expects that the new auto policy will be announced in the coming months with a level playing field provided to all assemblers. Going forward, the management was optimistic about volumetric growth with 25% volumes growth expected in MY27 in line with industry growth.
Important Disclosures
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