Indus Motor Company Limited (IMC), the local assembler of Toyota vehicles, posted a profit after tax of Rs. 25.5 billion for fiscal year 2025-26, marking an 11% increase from Rs. 23 billion recorded in the previous year.
The company disclosed the results in a filing with the Pakistan Stock Exchange (PSX).
Despite the annual growth, IMC’s fourth-quarter profit declined 5% year-on-year to Rs. 6.1 billion, mainly due to pressure on gross margins.
The company announced an interim cash dividend of Rs. 47 per share, taking its total FY26 dividend to Rs. 195 per share. The overall payout ratio stood at 60%.
IMC’s net sales grew 20% during the year to Rs. 258.8 billion, while vehicle sales increased significantly as the local auto market recovered.
The company reported 45,035 vehicle sales in FY26, up 33% from the previous year. It attributed the improvement to recovering demand and continued strength across its vehicle portfolio.
Annual gross profit increased 16% to Rs. 36.3 billion, while profit before tax rose 14% to Rs. 42.8 billion.
However, profitability came under pressure toward the end of the year. Fourth-quarter gross margin fell to 14%, compared with 15.5% in the previous quarter and 13.3% a year earlier.
IMC said its financial performance was supported by tighter cost controls, greater localization and favorable currency movements.
Chairman Mohamed Ali R. Habib said Pakistan’s economy showed signs of stabilization and gradual recovery during FY26. He stressed that a stable and predictable policy environment would be important for the auto industry as it enters a period of policy transition.
He said consistent policies would support localization, technology transfer, innovation and long-term industrial investment.
CEO Ali Asghar Jamali said higher sales and improved financial results reflected recovering market demand and the continued strength of the company’s brands. He added that IMC would continue focusing on operational efficiency, localization, innovation and disciplined investment.
Pakistan’s automotive market also improved during the year. According to IMC, passenger car and light commercial vehicle sales reported by PAMA increased 39% to more than 206,000 units.
The company attributed the broader recovery to improving consumer confidence, easier auto financing, new products and measures aimed at regulating used vehicle imports.
However, used vehicles still represented around 19% of the PAMA market, according to IMC, highlighting continued pressure on local manufacturers and the need for consistent policies supporting domestic production.
IMC also reported progress on its environmental initiatives. The company said it had completed the plantation of one million trees across Pakistan and planted 16,000 mangroves along the Sindh coastline.
Around 85% of its dealerships now use solar power, while more than 13% of local suppliers have also shifted to solar energy. The company said carbon-reduction initiatives at its manufacturing plant further lowered its environmental footprint.
Under its Concern Beyond Cars CSR program, IMC spent Rs. 377 million on community projects during FY26. The initiatives reached 255,761 people, representing a 27% increase in beneficiaries compared with the previous year.
Finance costs increased 40% to Rs. 370 million, while the effective tax rate rose to 40.4% from 38.9% in FY25.
Distribution expenses, however, dropped substantially to Rs. 1.05 billion from Rs. 2 billion a year earlier.
