Honda Atlas Cars (Pakistan) Limited (HCAR) posted a Rs. 2.49 billion profit (EPS: Rs. 17.41) in 1QMY27, nearly tripling year-on-year (YoY) from Rs. 828 million (EPS: Rs. 5.80) and rising 2.5x quarter-on-quarter (QoQ) from Rs. 1.01 billion (EPS: Rs. 7.06).

Net revenue climbed 41 percent YoY to Rs. 37.20 billion, driven by a 43 percent increase in vehicle sales to 7,918 units from 5,520 units a year earlier. Revenue remained largely unchanged QoQ compared with Rs. 37.30 billion in 4QMY26.

Sales growth was led by the City and Civic lineup, which recorded 6,978 units, while HR-V and BR-V sales reached 940 units during the quarter.

Gross margin narrowed to 7.7 percent from 8.6 percent a year ago as a higher contribution from the lower-margin Honda City weighed on profitability. However, the margin improved slightly from 7.5 percent QoQ.

Other income surged to Rs. 2.09 billion, up 3.8x YoY and 2.4x QoQ, mainly due to a one-off gain of Rs. 1.59 billion after the company settled its SIDC liability with the Government of Sindh. The settlement allowed Honda Atlas to remeasure the long-term liability at its present value using an 11.5 percent discount rate, resulting in the gain.

Finance costs rose to Rs. 631 million, more than tripling YoY because of higher borrowing costs, although they declined 33 percent QoQ from Rs. 936 million.

The company’s effective tax rate fell to 19.4 percent in 1QMY27, compared with 43.3 percent in 1QMY26 and 22.6 percent in the previous quarter.