Toyota’s Pakistan Unit Posts 28% Profit Surge as Auto Sector Recovery Gains Traction

IMC Net income For The Six Months To Rose To Rs 12.7 billion

Indus Motor Company Ltd. (IMC), the Karachi-based assembler of Toyota vehicles, saw its first-half profit jump nearly 28%, signaling a robust turnaround for Pakistan’s automotive industry as supply chain constraints ease and consumer appetite returns.

Net income for the six months ended December 31, 2025, rose to Rs12.7 billion ($45.6 million), up from Rs9.96 billion in the same period a year earlier, according to a filing with the Pakistan Stock Exchange on Friday. Revenue surged 40% to Rs119.19 billion, driven by a mix of higher delivery volumes and strategic price revisions.

The results underscore a stabilizing environment for the South Asian nation’s manufacturing sector. After a tumultuous period marked by import restrictions and currency volatility, IMC—a joint venture between the House of Habib, Toyota Motor Corp., and Toyota Tsusho Corp.—is benefiting from improved parts availability and a gradual pickup in local demand.

Key Financial Highlights

• Earnings Per Share (EPS): Increased to Rs161.60 from Rs126.69.
• Dividend Payout: Announced an interim cash dividend of Rs46 per share (460%).
• Gross Margins: Rose 55% to Rs18.09 billion, reflecting better cost absorption and pricing power.
• Tax Contribution: The company paid Rs8.83 billion in taxes, a 37% year-on-year increase.

While administrative and distribution expenses climbed 32% to Rs3.32 billion, the impact was largely offset by a marginal increase in “other income”—primarily interest earned on cash reserves—which stood at Rs8.22 billion.

Analysts suggest that the easing of administrative hurdles on the import of Completely Knocked Down (CKD) kits has allowed IMC to clear order backlogs. With the central bank maintaining a watchful eye on inflation and the rupee stabilizing, the automaker is well-positioned to capitalize on the recovery of the middle-class consumer segment.