Pakistan auto sector profits rise 39% to PKR 28.4 billion in June quarter

Combined profit of automobile companies included in Pakistan’s benchmark KSE-100 Index rose 39.2% year-on-year to PKR 28.4 billion in the quarter ended June 2026, supported by stronger vehicle sales, new model launches and increased auto financing, according to Arif Habib Limited Research.

The sector’s cumulative revenue increased 33.7% to PKR 310.9 billion during the quarter, while gross profit rose 29% to PKR 46.9 billion.

The overall gross margin stood at 15.1%, while the sector’s net margin was 9.1%.

What drove Pakistan auto sector profits higher?

Passenger car, light commercial vehicle and 4x4 sales increased 32.4% year-on-year to 62,416 units during the quarter from 47,155 units a year earlier, according to AHL.

Improved access to financing also supported vehicle demand. Outstanding auto financing increased 38% year-on-year to PKR 381.69 billion at the end of June 2026 from PKR 277 billion a year earlier.

The sector’s other income rose 53.5% to PKR 11.4 billion, primarily reflecting one-off gains related to the Sindh Infrastructure Development Cess and higher returns on cash balances.

Which automakers recorded the strongest earnings growth?

Sazgar Engineering Works Ltd. was the largest contributor to sector earnings, with quarterly profit surging 150.6% year-on-year to PKR 8.7 billion.

The company’s revenue increased 180.7%, supported by more than a twofold increase in four-wheeler sales to 6,549 units and deliveries of its Tank 500 model.

Atlas Honda Ltd. reported a 25.2% increase in earnings to PKR 6 billion.

Honda Atlas Cars Pakistan Ltd. posted a roughly threefold increase in quarterly profit to PKR 2.5 billion.

Millat Tractors Ltd. recorded a 36.3% increase in earnings to PKR 1.8 billion, supported by a 42.4% increase in sales volumes.

Which auto companies saw profits decline?

Indus Motor Company Ltd. reported a 5.4% decline in profit to PKR 6.1 billion amid lower revenue and increased competition.

Ghandhara Automobiles Ltd.’s consolidated profit fell 14.6% to PKR 1.6 billion, while Ghandhara Industries Ltd. reported broadly unchanged earnings of PKR 1.7 billion.

The varied performance reflected differences in product launches, sales volumes and competitive pressures across individual manufacturers, according to the report.

How did Pakistan’s broader auto market perform?

Growth extended beyond passenger vehicles during the quarter.

Industry-wide tractor sales rose 42.6% year-on-year to 8,499 units, while truck sales increased 37.2% to 2,561 units.

Two-wheeler sales advanced 27.4% to 530,481 units during the period.

Higher vehicle sales, increased auto financing and new model launches supported the sector’s earnings growth during the June quarter, although performance remained uneven across manufacturers.