Pakistan's listed automobile companies reported a strong quarter ended June 2026, with combined profits reaching Rs 28.4 billion, up 39.2 percent compared with the same period last year, according to a report by Arif Habib Limited. Sector revenue also climbed 33.7 percent to Rs 310.9 billion, pointing to a broad recovery across the industry. Higher vehicle sales, the introduction of new models and the expansion of auto financing supported the earnings growth, lifting business activity even as the sector faced rising fuel prices, local production requirements and the gradual shift toward electric mobility. Sazgar Engineering Works led the pack with quarterly earnings growth of 150.6 percent. Atlas Honda, Honda Atlas Cars and Millat Tractors also reported year on year increases in profits. The picture was not uniform, however. Indus Motor and Ghandhara Automobiles recorded declines in their earnings during the quarter. The figures highlight an industry in transition, where manufacturers are balancing sales growth with evolving consumer preferences and production challenges. Further developments in vehicle financing, localisation and electric vehicle adoption are expected to shape how the sector performs in the quarters ahead.