Indus Motor Q1 profit rises 10% to Rs 7.38 billion as Toyota sales jump 34%, Rs 56 dividend

Indus Motor Company (PSX: INDU), which assembles and sells Toyota cars in Pakistan, made a profit after tax of Rs 7.38 billion in the first quarter of its 2027 financial year (July to September 2026), up 10% from Rs 6.72 billion a year earlier, ProPakistani reported from the company's results. The board declared a cash dividend of Rs 56 per share, against Rs 51 in the same quarter last year.

The numbers at a glance

Profit was also 21% higher than in April to June 2026 (Rs 6.11 billion), when the gross margin had fallen to 10.3%. The dividend works out to about 60% of earnings.

What sold

The jump came from the sedans. Sales of the Yaris, Corolla and Corolla Cross rose 43% to 10,925 units, while the Fortuner and Hilux together edged up 3% to 2,335. Sedans made up 82% of volumes, against 77% a year ago, and because they carry thinner margins than the Fortuner and Hilux, the gross margin slipped even as sales grew.

Costs and other income

• Other income rose 11% to Rs 3.22 billion, mostly interest on the company's cash.
• Finance costs climbed to Rs 204 million from Rs 50 million, on higher rates and the start of SIDC payments.
• Distribution expenses rose 4% to Rs 723 million and administrative expenses 5% to Rs 898 million.
• The effective tax rate was 37.6%, down from 39.3%.

What it means for buyers and shareholders

Stronger volumes suggest demand for locally assembled sedans is holding up despite high prices and interest rates. If you are weighing a Corolla or Yaris on instalments, our car loan calculator shows the monthly payment at today's KIBOR-linked rates, and the car registration tax calculator adds the cost of getting it on the road. Current Toyota prices are on our car price list.

For shareholders, a Rs 56 dividend is taxed at source; the KSE-100 page tracks how the wider market is moving.