Indus Motor Company, which makes Toyota cars in Pakistan, earned a profit of Rs. 7.38 billion in the July to September 2026 quarter, according to the company’s financial results. That is 10% more than the Rs. 6.72 billion it made in the same three months last year. Indus Motor profit per share rose to Rs. 93.95 from Rs. 85.49.

The company also announced a cash dividend of Rs. 56 per share, up from Rs. 51 a year ago. That means it is paying out about 60% of its profit to shareholders. Someone holding 100 shares would get Rs. 5,600 before tax.

This is the first quarter of Indus Motor’s 2026-27 financial year, which runs from July to June.

Best quarter in over a year

The profit is higher than any quarter of the last financial year. Indus Motor earned Rs. 5.98 billion in October to December 2025, and its nine-month profit reached Rs. 19.4 billion by March 2026, which put the January to March quarter at about Rs. 6.7 billion. Its April to June profit was Rs. 6.11 billion, so this quarter’s result is 21% higher than the one just before it.

The trend over three years is steady. In the same quarter of 2024, Indus Motor’s profit was Rs. 5.09 billion, so it has grown by almost half in two years.

Corolla and Yaris lead the way

Sales were Rs. 74.02 billion, up 20% from a year ago. The main reason was volume. Indus Motor sold 13,260 vehicles, 34% more than last year.

Most of the growth came from its cars. Sales of the Yaris, Corolla and Corolla Cross together jumped 43% to 10,925 units. The Fortuner and Hilux rose just 3% to 2,335 units.

That mix came at a cost. Toyota earns more on each Fortuner and Hilux than on its sedans. With sedans making up 82% of sales, up from 77%, the gross margin (the share of sales left after making the cars) fell to 15.3% from 17.1%. It was still a big recovery from 10.3% in the April to June quarter.

Indus Motor also earned Rs. 3.22 billion from interest on its cash savings, 11% more than last year. Its borrowing costs rose to Rs. 204 million from Rs. 50 million because of higher interest rates.

Demand slowed as the quarter went on

Across the industry, sales of locally built cars and light commercial vehicles rose about 19.4% to 50,480 units in the quarter, according to the Pakistan Automotive Manufacturers Association (PAMA). That puts Toyota at roughly one in four of those vehicles sold.

But the pace slowed month by month. Passenger car sales were 17,216 units in July. By September, they had dropped to 10,939 units, almost 10% lower than September 2025.

Toyota held up better than most. Its Corolla, Yaris and Corolla Cross sold 3,563 units in September, up 34.2% from a year earlier.

CEO warns about used car imports

Indus Motor CEO Ali Asghar Jamali said the recovery in car demand is encouraging, but raised two worries.

The first is the Gift Scheme, which lets overseas Pakistanis send a used car to family back home. Ali Asghar Jamali said the scheme is being misused to bring in used cars for sale. He said this hurts local factories, discourages investment, and costs jobs and government revenue.

The second is that Pakistan still has no clear long-term car policy. Ali Asghar Jamali said this uncertainty is making companies hold back on investment decisions.

The company said the industry is running at only about 45% of what its factories can produce. It called for stricter checks on imports, lower duties and taxes, easier car financing, and help for carmakers to export.

Indus Motor expects demand for locally made cars to improve slowly over the rest of the financial year. It listed rising oil prices, tension in the region, higher costs and swings in the rupee as the main risks.