Toyota Indus Motor’s Q3 Profit Rises to Rs. 6.7 Billion on Stronger Sales

Indus Motor Company posted a profit of Rs. 6.7 billion for the third quarter of fiscal year 2026, as higher vehicle sales and stronger margins helped lift earnings above market expectations.

According to a report by Topline Securities issued on April 27, the company recorded earnings per share of Rs. 85.21 for the quarter, up 2% from a year earlier and 12% higher than the previous quarter.

That took nine-month profit to Rs. 19.4 billion, with earnings per share reaching Rs. 246.8, compared with Rs. 16.6 billion, or Rs. 210.6 per share, in the same period last year.

The company also announced an interim cash dividend of Rs. 51 per share, bringing its total payout for the first nine months of fiscal year 2026 to Rs. 148 per share. That translates into a payout ratio of 60%.

Topline Securities said the quarterly result came in slightly above expectations, mainly because gross margins were stronger than anticipated.

Gross margins stood at 15.5% in the third quarter, down from 16.9% a year earlier but improving from 13.1% in the previous quarter. For the nine months, gross margins edged up to 15.3% from 15.1% a year ago.

The brokerage attributed the year-on-year margin decline and quarter-on-quarter improvement to changes in sales mix, with higher sales of Corolla, Yaris and Cross variants relative to Fortuner and Hilux on a yearly basis, while the quarterly comparison benefited from lower relative contribution earlier. Sales of Fortuner and Hilux rose 53% from the previous quarter, which the report linked to a discount offer on the petrol variant of Fortuner.

Net sales climbed 20% from a year earlier and 27% from the previous quarter to Rs. 72.8 billion in the three months ended March. Unit sales rose 40% year-on-year and 19% quarter-on-quarter to 12,750 vehicles, compared with 9,077 units in the same quarter last year and 10,674 units in the previous quarter.

The effective tax rate stood at 42.2% in the third quarter, compared with 38.9% a year earlier and 42.8% in the second quarter. For the first nine months of the fiscal year, the effective tax rate increased to 41.5% from 39.2% a year earlier.

In a separate material information notice, Indus Motor said it had approved an additional Rs. 1 billion investment to enhance localization, taking the total planned investment to Rs. 5.1 billion. The company said the new Rs. 1 billion allocation is expected to be completed by 2027, while the remaining Rs. 4.1 billion is targeted for completion by 2026.

Topline Securities said the stock is currently trading at a fiscal year 2026 estimated price-to-earnings ratio of 5.4 times and offers a dividend yield of 11%.