KARACHI: Exide Pakistan Limited (PSX: EXIDE) reported a sharp decline in profitability for the first quarter ended June 30, 2026, as lower sales and compressed margins weighed on the company’s financial performance. The company announced its financial results following a meeting of its Board of Directors held on July 29, 2026. No cash dividend, bonus shares, right shares, or any other corporate action were declared.
According to the company’s unaudited unconsolidated financial statements, net sales (turnover) fell to Rs5.28 billion during the quarter, compared with Rs7.05 billion recorded in the corresponding period last year, reflecting a year-on-year decline of nearly 25%. The drop in revenue also led to lower gross profit, which decreased to Rs772.26 million from Rs1.03 billion a year earlier.
Operating profit declined significantly to Rs385.98 million, down from Rs594.55 million in the same quarter of the previous year. Although the company reported a slight increase in other operating income, higher financing costs and operating expenses continued to pressure earnings.
As a result, profit before tax fell to Rs193.47 million, compared with Rs366.12 million in the corresponding quarter of 2025. After accounting for taxation of Rs66.05 million, profit after tax stood at Rs127.42 million, representing a decline of approximately 43% from Rs223.34 million reported in the same period last year. Earnings per share (EPS) also dropped to Rs16.40, compared with Rs28.75 a year earlier.
The company’s financial position remained stable despite weaker earnings. Total assets increased modestly, supported by higher trade receivables and tax recoverable balances, while shareholders’ equity rose to Rs7.57 billion, driven by retained earnings. However, short-term borrowings remained elevated at over Rs5.48 billion, highlighting the company’s continued reliance on working capital financing.
Exide Pakistan also reported a net cash outflow from operating activities during the quarter, reflecting ongoing working capital requirements and financing costs. The company ended the period with lower cash and bank balances than at the beginning of the quarter.
The latest results indicate a challenging start to the financial year for Exide Pakistan, with subdued demand and lower profitability affecting overall performance. Investors will closely monitor the company’s ability to improve sales momentum and strengthen margins in the coming quarters.
