KARACHI – Treet Battery Limited (PSX: TREET) reported a steep loss for the first quarter of fiscal year 2026, as a significant contraction in sales and high financing expenses severely impacted profitability.
The company announced a consolidated loss after tax of Rs117.982 million for the quarter ended September 30, 2025. This marks a severe deterioration from the restated loss of Rs 16.169 million it recorded in the same period last year. Consequently, the loss per share ballooned to Rs0.11, compared to a loss of Rs0.01 per share in the first quarter of FY25.
Net sales witnessed a sharp 20.5% year-on-year decline, falling to Rs1.87 billion from Rs2.35 billion in the prior-year period. The decline in sales volume and pricing power led to a steep 38.3% drop in gross profit, which stood at Rs295.9 million. The gross profit margin contracted to 15.8% from 20.4% a year ago.
While finance costs decreased year-on-year, they remained a massive burden at Rs115.8 million, consuming a substantial portion of the company’s gross profit. The company’s cash flow statement reveals severe strain.
A massive increase in inventory (stock-in-trade rose by Rs534.7 million) and trade debts, coupled with a decrease in trade payables, led to net cash used in operating activities of Rs1.09 billion. This forced the company to increase its short-term borrowings by Rs580.2 million to manage the liquidity crunch.
The company’s financial position as of September 30, 2025, shows a weakened liquidity state. Cash and bank balances fell to Rs156.6 million, down from Rs356.4 million at the end of June 2025. Short-term borrowings surged to Rs6.13 billion, underscoring the company’s reliance on debt to fund its operations. The accumulated loss on the balance sheet widened to Rs569.5 million.
The board of directors did not announce any dividend, bonus, or right shares.
