External broker reports(aggregated public sources), Topline Securities

Topline Securities

External broker reports(aggregated public sources)

Topline Securities is one of the fastest growing brokerage houses in Pakistan. It has strong equity brokerage, economic / equity research, mutual fund distribution, commodity trading and corporate finance & advisory functions. Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

Equity Bottom-Up

<ul><li>Indus Motor Company (INDU) announced its 3QFY26 results today, where the company recorded profit of Rs6.7bn (EPS of Rs85.21), up 2% YoY and 12% QoQ.</li><li>The result came slightly higher than expectations due to higher-than-expected gross margins.</li><li>This took 9MFY26 earnings at Rs19.4bn (EPS of Rs246.8) up 17% YoY compared to 9MFY25 profit of Rs16.6bn (EPS of Rs210.6).</li></ul>

Indus Motor Company (INDU) announced its 3QFY26 results today, where the company recorded profit of Rs6.7bn (EPS of Rs85.21), up 2% YoY and 12% QoQ.The result came slightly higher than expectations due to higher-than-expected gross margins.This took 9MFY26 earnings at Rs19.4bn (EPS of Rs246.8) up 17% YoY compared to 9MFY25 profit of Rs16.6bn (EPS of Rs210.6).

Indus Motor Company (INDU): 3QFY26 EPS at Rs85.21, Up 2% YoY and 12% QoQ – Slightly Higher Than Expectations

<ul><li>Pakistan car sales (as reported by PAMA) clocked in at 17,121 units in Feb 2026 a 42% YoY but down 26% MoM. This took 8MFY26 cumulative sales to 128,498 units, up 43% YoY from 89,770 units in 8MFY25.</li><li>The sharp MoM decline is primarily attributed to a high base effect, as January sales typically surge due to new-year vehicle registrations, coupled with fewer working days in February. Meanwhile, the strong YoY growth was supported by new market entrants, lower interest rates, easing inflation, and improving macroeconomic sentiment.</li><li>We expect positive momentum in auto sales to continue in 2026, supported by lower interest rates and new hybrid and plug-in hybrid models. Additionally, easing inflation and improved economic activity should further strengthen demand in the coming months.</li></ul>

Pakistan car sales (as reported by PAMA) clocked in at 17,121 units in Feb 2026 a 42% YoY but down 26% MoM. This took 8MFY26 cumulative sales to 128,498 units, up 43% YoY from 89,770 units in 8MFY25.The sharp MoM decline is primarily attributed to a high base effect, as January sales typically surge due to new-year vehicle registrations, coupled with fewer working days in February. Meanwhile, the strong YoY growth was supported by new market entrants, lower interest rates, easing inflation, and improving macroeconomic sentiment.We expect positive momentum in auto sales to continue in 2026, supported by lower interest rates and new hybrid and plug-in hybrid models. Additionally, easing inflation and improved economic activity should further strengthen demand in the coming months.

Pakistan Automobiles: Car Sales Rose 42% YoY But Down 26% MoM To 17,121 Units In Feb 2026

<ul><li>Indus Motor (INDU) conducted its 1HFY26 analyst briefing today, where management discussed financial performance and future outlook.</li><li>The company posted gross margins of 13.1% in 2QFY26, down from 14.1% in 2QFY25 and 17.1% in 1QFY26. As per the management, the decline was primarily driven by discounted sales campaigns, currency impact and a shift in sales mix.</li><li>The Company expects gradual growth in local vehicle demand on the back of economic stability, steady financing rates, and controlled inflation, though recent geopolitical tensions in Gulf regions will pose uncertainty.</li></ul>

Indus Motor (INDU) conducted its 1HFY26 analyst briefing today, where management discussed financial performance and future outlook.The company posted gross margins of 13.1% in 2QFY26, down from 14.1% in 2QFY25 and 17.1% in 1QFY26. As per the management, the decline was primarily driven by discounted sales campaigns, currency impact and a shift in sales mix.The Company expects gradual growth in local vehicle demand on the back of economic stability, steady financing rates, and controlled inflation, though recent geopolitical tensions in Gulf regions will pose uncertainty.

Topline Flash Note: Indus Motor Company (INDU): Corporate Briefing Key Takeaways

<ul><li>Indus Motor Company (INDU) announced its 2QFY26 results today, where the company recorded profit of Rs5.98bn (EPS of Rs76.11), up 23% YoY.</li><li>This took 1HFY26 earnings at Rs12.7bn (EPS of Rs161.60) up 28% YoY compared to 1HFY25 profit of Rs9.96bn (EPS of Rs126.68).</li><li>INDU announced an interim cash dividend of Rs46/share, taking 1HFY26 total dividend to Rs97/share (1H Payout ratio 60%).</li></ul>

Indus Motor Company (INDU) announced its 2QFY26 results today, where the company recorded profit of Rs5.98bn (EPS of Rs76.11), up 23% YoY.This took 1HFY26 earnings at Rs12.7bn (EPS of Rs161.60) up 28% YoY compared to 1HFY25 profit of Rs9.96bn (EPS of Rs126.68).INDU announced an interim cash dividend of Rs46/share, taking 1HFY26 total dividend to Rs97/share (1H Payout ratio 60%).

Indus Motor Company (INDU): 2QFY26 EPS At Rs76.11, Up 23% YoY But Down 11% QoQ – In Line With Industry Expectations

Thematic (Sector/Industry)

<ul><li>Pakistan car sales (as reported by PAMA) clocked in at 19,818 units in Jul 2026, up by 79% YoY while down 13% MoM.</li><li>The YoY rise was driven by new market entrants, new product launches and surge in auto financing.</li><li>Meanwhile, the MoM decline was primarily due to uncertainty surrounding the new auto policy.</li></ul>

Pakistan car sales (as reported by PAMA) clocked in at 19,818 units in Jul 2026, up by 79% YoY while down 13% MoM.The YoY rise was driven by new market entrants, new product launches and surge in auto financing.Meanwhile, the MoM decline was primarily due to uncertainty surrounding the new auto policy.

Pakistan Automobiles: Car Sales Rose 79% YoY But Down 13% MoM to 19,818 Units in Jul 2026

Pakistan

Indus Motor Company Limited was created through a joint venture agreement between the House of Habib, the Toyota Motor Corporation and the Toyota Tsusho Corporation, in order to assemble, manufacture and market Toyota vehicles.  The company is also the sole distributor of Toyota vehicles in Pakistan.

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Indus Motor Company (INDU PA)

Indus Motor Company (INDU): 3QFY26 EPS at Rs85.21, Up 2% YoY and 12% QoQ – Slightly Higher Than Expectations

Indus Motor Company (INDU) announced its 3QFY26 results today, where the company recorded profit of Rs6.7bn (EPS of Rs85.21), up 2% YoY and 12%...

Topline Securities

Pakistan Automobiles: Car Sales Rose 42% YoY But Down 26% MoM To 17,121 Units In Feb 2026

Pakistan car sales (as reported by PAMA) clocked in at 17,121 units in Feb 2026 a 42% YoY but down 26% MoM. This took 8MFY26 cumulative sales to...

Topline Securities

Topline Flash Note: Indus Motor Company (INDU): Corporate Briefing Key Takeaways

Indus Motor (INDU) conducted its 1HFY26 analyst briefing today, where management discussed financial performance and future outlook. The company...

Topline Securities

Indus Motor Company (INDU): 2QFY26 EPS At Rs76.11, Up 23% YoY But Down 11% QoQ – In Line With Industry Expectations

Indus Motor Company (INDU) announced its 2QFY26 results today, where the company recorded profit of Rs5.98bn (EPS of Rs76.11), up 23% YoY. This...

Topline Securities

Pakistan Automobiles: Car Sales Rose 79% YoY But Down 13% MoM to 19,818 Units in Jul 2026

Pakistan car sales (as reported by PAMA) clocked in at 19,818 units in Jul 2026, up by 79% YoY while down 13% MoM. The YoY rise was driven by new...

Topline Securities

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