Honda sold more cars during January to March 2026, but its profit remained under pressure compared to last year.
Profit Improved From Last Quarter, But Fell From Last Year
The company reported a profit of Rs. 1.007 billion for the January to March 2026 period, according to Topline Securities.
This was 40% lower than the same period last year, which was January to March 2025, when the company made Rs. 1.682 billion.
However, compared to the October to December 2025 period, profit increased by 54%, showing some recovery in the company’s recent performance
Sales Improved Sharply
The company also recorded net sales of Rs. 37.3 billion during the January to March 2026 period, compared to Rs. 27.6 billion in the January to March 2025 period. That is a 35% increase.
The company’s vehicle sales also improved, reaching 8,058 units, up 42% from last year. This suggests that demand for Honda cars recovered during the period, aided by stronger market activity and improved buyer confidence.
Profit Falls Yearly, Rises Quarterly
The company’s final profit fell to Rs. 1.007 billion for January to March 2026, down 40% from Rs. 1.682 billion in the same period last year.
The main reason was higher finance cost, which reached Rs. 936 million, compared to Rs. 346 million in the same period last year.
In simple terms, Honda sold more cars, but higher costs ate into its earnings.
However, compared to the previous quarter, October to December 2025, profit increased by 54%, indicating some recovery in Honda’s recent performance.
Read More: PAMA Insight: Atlas Honda Leads as Bike Sales Surge in April 2026 – PakWheels Blog
How This Impacts the Consumer
While a big profit looks great on a corporate spreadsheet, reading between the lines reveals exactly why buying a brand-new car in Pakistan has become such an uphill battle. Here is how these numbers directly affect the average consumer:
No Price Cuts Coming
Honda’s production costs grew faster than its revenue (58% vs 56%). Because their manufacturing margins are under serious pressure from raw material and import costs, the company cannot afford to drop prices. If you’re waiting for a massive price cut on a Civic or City, don’t hold your breath.
Your Booking Advances are Funding Their Profit
Honda’s absolute savior was a 133% explosion in ‘Other Income’ (reaching Rs. 2.31 billion). In our local auto industry, this is heavily driven by the interest manufacturers earn on the cash advances you pay when booking a vehicle. In a high-interest-rate environment, buyers are effectively giving car companies massive interest-free loans to boost their profitability.
Car Financing Will Remain Expensive
Honda’s own finance costs nearly doubled due to the State Bank’s tight monetary policy (with the policy rate hiked to 11.5%). As long as interest rates stay high enough to strain a giant like Honda, bank leasing for retail consumers will remain prohibitively expensive, keeping monthly installments out of reach for the middle class.
The Silver Lining
It’s not all bad news. The fact that Honda is highly profitable means it has the financial muscle to keep its assembly lines running smoothly. Unlike the dark days of massive plant shutdowns and extreme LC restrictions, buyers can expect shorter delivery wait times and a stable supply of genuine spare parts.
PakWheels Take
Overall, it’s a positive sign for the local auto sector that a giant like Honda Atlas is reporting solid profits and paying dividends despite an unforgiving tax regime and high financing costs. It proves that despite the testing economic environment, the appetite for Honda cars remains intact.
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