What Atlas Honda’s management is saying: record sales, new models & EV future

Atlas Honda Limited (ATLH) just wrapped up a strong year, and the company’s management is feeling confident about what’s next. Here’s what they had to say.

Record sales, bigger bikes doing the heavy lifting

In FY25, Atlas Honda sold 1.2 million motorcycles, up 25% from last year. In fact, the last quarter was their best ever, with 360,000 bikes sold.

But it’s not just more bikes, it’s also bigger ones. Sales of 100cc and 125cc bikes are rising faster than the traditional 70cc models. Just a few years ago, 70cc bikes made up 90% of Honda’s sales. Today, that number is closer to 50%.

To match this shift, the company will launch two new high-engine-capacity models, fully developed by local R&D teams.

Going electric: Honda’s first EV bike launches this week

Honda is ready to enter the electric bike market. The company will roll out its first EV motorcycle this week, targeting the everyday commuter.

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What makes it different? Unlike others using cheap, non-lithium batteries, Honda’s bike will feature lithium-ion tech, offering better safety and durability.

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Initially, the EVs will be imported, but local production will begin once demand picks up. The management praised Pakistan’s EV policy, calling it supportive for local manufacturing.

Financial performance: sales and profits up

In FY25:

• Revenue: PKR 204 billion (↑ 28% YoY)
• Gross profit: PKR 22.2 billion (↑ 81% YoY)
• EPS: Record-high of Rs 122.9
• Dividend: Rs 74/share (↑ 57% YoY)

Higher volumes, a better product mix, and a stable exchange rate helped margins rise to 10.9%, up from 7.7% last year.

Capacity, local parts & cost control

Atlas Honda is using 1.2 million units of its 1.5 million production capacity, with an extra 300,000 bikes outsourced if needed. So, there’s no need for new factories for now.

Also, 85% of production costs are localized, especially for the 70cc segment, where 95% of parts are made locally. This helps reduce dependency on imports and protects against currency shocks.

Exports & ESG: a bigger global footprint

Honda exported 40,000 bikes this year, a strong sign of growing international demand.

The company also made progress on ESG goals:

• 9.8MW solar power installed
• 700+ women trained as riders
• CO₂ and water use per unit reduced
• PKR 207 million donated for social causes

Looking ahead

Management is optimistic. Sales are expected to hit new highs again this year. Urban demand remains strong, and a recovery in rural areas could push numbers even higher.

With a strong lineup, an electric launch, and stable margins, Atlas Honda is betting big on FY26.

Source: Taurus Securities Limited

⚠️ This post reflects the author’s personal opinion and is for informational purposes only. It does not constitute financial advice. Investing involves risk and should be done independently. Read full disclaimer →