Toyota Indus Motor Reports Rs. 6.7 Billion Profit in First Quarter of FY26
By Business Desk | Published Oct 28, 2025 | 11:43 am
Indus Motor Company (INDU) has announced a strong start to the fiscal year, reporting a profit of Rs. 6.7 billion for the first quarter of FY26, marking a 32% year-on-year increase compared to Rs. 5.09 billion earned during the same period last year.
According to the company’s financial results released on October 28, 2025, earnings per share (EPS) stood at Rs. 85.49, up 32% from the previous year.
The company’s performance was supported by higher gross margins, which rose to 17.1% in 1QFY26 — an improvement from 13.4% in the same quarter last year and 13.3% in the preceding quarter, as per Topline Securities.
This margin growth came despite an 11% quarter-on-quarter decline in net sales, as Indus Motor benefited from stronger production volumes and effective cost control measures.
Net sales jumped 48% year-on-year to Rs. 61.7 billion, while Toyota vehicle sales grew 61% YoY, reaching 9,889 units in the quarter. Reflecting confidence in its financial position, the company also announced a dividend of Rs. 51 per share, representing a 60% payout ratio.
Operating costs showed mixed trends: distribution expenses rose by 5% YoY, while administrative expenses increased 46% YoY but were down 33% from the previous quarter. Other income declined by 35% YoY due to reduced cash reserves and lower interest rates.
Indus Motor’s effective tax rate for the quarter stood at 39%.
Market analysts remain optimistic about the company’s outlook, citing strong margins, stable demand for Toyota models, and a favorable price-to-earnings ratio for FY26 and FY27.
The results reinforce Toyota Indus Motor’s position as one of Pakistan’s leading automotive manufacturers, showing resilience amid changing market conditions and continued investor confidence.
