Indus Motor Company Limited (INDU) has delivered its highest half-yearly profit on record, reporting a Profit After Tax (PAT) of Rs. 12.70 billion for the first half of FY26, a 28 percent year-on-year (YoY) increase compared to Rs. 9.96 billion in the same period last year. Earnings per share for 1HFY26 rose to Rs. 161.60 from Rs. 126.69, marking the company’s strongest half-year performance since 2014.
For the second quarter of FY26, the company posted a PAT of Rs. 5.98 billion, translating into EPS of Rs. 76.11, up 23 percent YoY from Rs. 4.87 billion (EPS: Rs. 61.92) in the corresponding quarter last year.
Alongside the results, the company announced a cash dividend of Rs. 46 per share for 2QFY26, taking the cumulative dividend payout for 1HFY26 to Rs. 97 per share.
Net sales during 1HFY26 climbed to Rs. 119.20 billion, reflecting a robust 40 percent YoY increase. In 2QFY26, net sales stood at Rs. 57.46 billion, up 36 percent YoY compared to Rs. 42.38 billion in the same quarter of last year.
The growth was primarily volume-led, with vehicle sales rising 67 percent YoY to 10,674 units during the quarter. Higher deliveries of Yaris, Corolla, and Corolla Cross drove performance, collectively accounting for 9,094 units, while Fortuner and Hilux contributed 1,580 units in 2QFY26.
Gross margins for 1HFY26 improved to 15.2 percent from 13.8 percent in 1HFY25. However, quarterly gross margins eased to 13.1 percent in 2QFY26 from 14.1 percent in the previous quarter, mainly due to a higher share of lower-priced variants in the sales mix.
Other income rose 43 percent YoY to Rs. 5.32 billion in 2QFY26, supported by increased cash and cash equivalents.
Finance costs increased to Rs. 82 million in 2QFY26 from Rs. 38 million in the same period last year. On a half-year basis, finance costs stood at Rs. 132 million, compared to Rs. 100 million in 1HFY25.
The company recorded an effective tax rate of approximately 39.3 percent in 2QFY26, compared to 40 percent last year. Cumulatively, the effective tax rate for 1HFY26 came in at 41.0 percent, up from 39.4 percent in the corresponding period of last year.
Analysts maintain a “Buy” recommendation on the stock, with Indus Motor Company currently trading at FY26 and FY27 price-to-earnings multiples of 6.1x and 5.8x, respectively.
