Atlas Battery sticks with lead-acid, even as lithium-ion gains traction

Atlas Battery Ltd closed fiscal 2025 with sharply weaker results and a steadfast message: despite the lithium wave, lead-acid remains its core. The company’s stance sets up a revealing contrast with Treet, which is moving into lithium-ion through a tie-up with a Chinese partner and, according to recent reporting, is preparing local manufacturing capability. The strategic fork comes just as Pakistan’s policy push and consumer interest edge toward electric mobility – a category dominated by lithium-ion chemistry.

Atlas Battery’s top line fell and profitability deteriorated materially in FY25. Net sales declined 15% year-on-year to Rs35.2 billion (FY24: Rs41.5 billion) as unit volumes slipped and consumers migrated from heavy to medium-sized batteries, which carry lower average realisations. Gross profit dropped 33% to Rs4.0 billion, pulling the gross margin down to 11% from 14% a year earlier. Operating profit tumbled 54% to Rs1.8 billion, while EBITDA fell 47%. After finance costs and tax, profit after tax plunged 93% to Rs91 million, dragging net margin to effectively 0% (FY24: 3%) and earnings per share to Rs2.60 (FY24: Rs38.37). The company paid no dividend for FY25 (FY24: Rs20).