KARACHI: Atlas Battery Limited has announced its financial results for the nine months ended March 31, 2026, reporting a sharp decline in profitability as lower sales and rising financing costs weighed on earnings. The company also announced that its Board of Directors has recommended no cash dividend, bonus shares, or right shares for the period.

According to the company’s condensed interim financial statements, net sales fell to Rs23.65 billion during the nine-month period, compared with Rs24.62 billion recorded in the corresponding period last year. Gross profit also declined significantly to Rs2.33 billion from Rs2.82 billion, reflecting continued pressure on margins.

Atlas Battery’s profit from operations dropped to Rs733 million, down from Rs1.26 billion a year earlier. Meanwhile, finance costs decreased to Rs682 million, although they remained a significant burden on earnings. After accounting for taxes and levies, the company posted a net profit of Rs2.93 million, a substantial decline from Rs15.82 million earned in the same period of the previous year. Earnings per share (EPS) also slipped to Rs0.08, compared with Rs0.45 last year.

For the third quarter alone, the company reported a net loss of Rs49.69 million, compared with a loss of Rs149.59 million in the corresponding quarter of last year, indicating some improvement in quarterly performance despite remaining in the red.

On the financial position side, Atlas Battery’s total assets increased to Rs23.54 billion as of March 31, 2026, from Rs18.91 billion at the end of June 2025. Inventories, trade receivables, and short-term borrowings all recorded notable increases, reflecting higher working capital requirements. Total equity stood at Rs7.90 billion, while total liabilities rose to Rs15.64 billion.

The company’s cash flow statement showed that operating activities generated a net cash outflow of Rs3.87 billion, primarily due to increased investment in working capital. However, financing activities generated Rs4.44 billion, largely through higher short-term borrowings, helping the company close the period with cash and bank balances of Rs1.20 billion, up from Rs1.03 billion at the beginning of the financial year.

Despite maintaining profitability on a cumulative basis, the sharp decline in earnings highlights the challenging operating environment facing Atlas Battery. Management opted not to recommend any shareholder payout, reflecting a cautious approach as the company navigates margin pressures and elevated financing needs.