KARACHI: Indus Motor Company (INDU) reported lower margins and flagged supply risks at its first half FY26 analyst briefing, while expressing cautious optimism about demand recovery.
Gross margins stood at 13.1 per cent in the second quarter of FY26, down from 14.1 per cent a year earlier and 17.1 per cent in the previous quarter. Management attributed the decline to discounted sales campaigns, currency impact and a change in sales mix.
In the used imported cars segment, 25,507 units were brought into the country during the first half of FY26, compared with 42,125 units in FY25, with a recent downward trend.The company warned that the ongoing Middle East crisis could disrupt imported parts, citing shipping delays and higher freight costs. Broader supply pressures may emerge in the coming month.
Management expects gradual growth in local demand, supported by economic stability and steady financing rates, though geopolitical tensions remain a risk.The company posted a first half FY26 profit after tax of Rs12.7 billion, up 28 per cent year on year.
