Honda Atlas Cars Pakistan’s profit after tax (PAT) is expected to increase 52% year-on-year to Rs1.1 billion in the first quarter of fiscal year 2026-27, despite a sharp 72% decline in HR-V and BR-V sales amid delays in hybrid vehicle deliveries.
The company’s earnings per share (EPS) are projected at Rs7.50 for the quarter ended September 2026, compared with Rs5.20 in the corresponding period last year, according to an analyst estimate.
Hybrid Delivery Delays Hit HR-V and BR-V Sales
Honda Atlas recorded a sharp decline in HR-V and BR-V sales volumes, which fell 72% year-on-year as deliveries of the HR-V hybrid variant were delayed.
However, sales of the Civic and City surged 86% during the period, helping offset the weakness in SUV volumes and supporting an estimated 32% increase in revenue.
The contrasting performance of Honda’s vehicle models highlights how delivery delays can affect sales composition even when demand for other models remains strong.
While the increase in Civic and City sales is expected to support overall revenue growth, the decline in HR-V and BR-V volumes remains a key development in the company’s quarterly performance.
Honda Atlas Net Profit Margin Expected to Improve
Honda Atlas’s net profit margin is projected to improve slightly to 3.2% in the September quarter, compared with 2.9% in the same period last year.
Gross margin, however, is expected to remain broadly unchanged at 7.5%, against 7.6% a year earlier. The unfavourable sales mix is expected to offset some of the benefits associated with higher overall sales.
Lower finance costs are also expected to support earnings. Finance costs are projected to decline 70% year-on-year, partly reflecting lower expected discounting of trade debts.
The combination of higher revenue and reduced finance costs is expected to contribute to annual profit growth despite the steep decline in SUV sales.
Quarterly Profit Expected to Decline From Previous Quarter
Despite the projected year-on-year increase in earnings, Honda Atlas’s PAT is expected to fall significantly on a quarterly basis.
Profit after tax is forecast to decline from Rs2.4 billion in the preceding quarter to Rs1.1 billion in the September quarter. Earnings per share are expected to decrease from Rs17.40 to Rs7.50 over the same period.
The company is also not expected to announce a dividend for the quarter.
The sequential decline indicates that the anticipated annual earnings improvement may not translate into stronger profitability compared with the preceding quarter.
Honda Pakistan Earnings Outlook Hinges on Sales Mix
Honda Atlas’s first-quarter outlook reflects a mixed performance, with stronger Civic and City sales and lower finance costs expected to support annual earnings growth, while delayed hybrid deliveries weigh heavily on HR-V and BR-V volumes.
The company’s ability to improve profitability will depend on vehicle delivery schedules, sales composition and the sustainability of demand across its model lineup.
The September-quarter results will provide further insight into how these factors are affecting Honda Atlas’s earnings and its position in Pakistan’s automobile market.