Indus Motor Company Limited (INDU) reported a profit after tax of Rs. 7.38 billion for the first quarter of fiscal year 2027, up 10 percent year over year from Rs. 6.72 billion in the same period last year.
Earnings per share rose to Rs. 93.95 from Rs. 85.49 in 1QFY26, while quarterly profit climbed 21 percent from Rs. 6.11 billion in 4QFY26. The company also announced a cash dividend of Rs. 56 per share, compared with Rs. 51 per share in 1QFY26, translating into a payout ratio of 59.6 percent.
Revenue Rides Higher Volumes
Net sales reached Rs. 74.02 billion in 1QFY27, increasing 20 percent year over year and 11 percent quarter over quarter. The growth was driven by a 34 percent YoY increase in volumes to 13,260 units, up from 11,333 units sold in 4QFY26.
The surge was led by the Yaris, Corolla and Corolla Cross segment, which jumped 43 percent YoY to 10,925 units, while Fortuner and Hilux volumes edged up 3 percent YoY to a combined 2,335 units.
Margins Under Pressure from Sales Mix
Gross margin declined to 15.3 percent from 17.1 percent in 1QFY26, reflecting a sales mix tilted toward sedans, which accounted for 82 percent of total volumes compared with 77 percent in 1QFY26. The lower-margin mix was attributed to the reduced relative contribution of Fortuner and Hilux. On a quarterly basis, however, gross margin recovered from 10.3 percent in 4QFY26.
Distribution expenses increased 4 percent year over year to Rs. 723 million, normalizing from 4QFY26, when a reversal of warranty obligations worth Rs. 625 million had been booked. Administrative expenses rose 5 percent to Rs. 898 million.
Other Income Up, Finance Costs Rise
Other income increased 11 percent year over year to Rs. 3.22 billion, supported by higher savings rates. Finance costs, meanwhile, climbed to Rs. 204 million from Rs. 50 million in 1QFY26 due to higher interest rates and the commencement of SIDC payments. Finance costs were also up 9 percent quarter over quarter from Rs. 186 million in 4QFY26.
The effective tax rate stood at 37.6 percent in 1QFY27, compared with 39.3 percent in 1QFY26 and 37.0 percent in 4QFY26.
