ATBA slips into red with Rs371m loss in FY26

August 25, 2026 (MLN): Atlas Battery Limited (PSX: ATBA) slipped into the red for the fiscal year ended June 30, 2026, reporting a net loss of Rs370.69m compared to a net profit of Rs91.21m in the preceding year.

Reflecting this bottom-line reversal, basic and diluted earnings per share (EPS) turned negative at a loss per share (LPS) of Rs10.59 for the year, compared to an EPS of Rs2.6 in FY25.

The primary factor driving the bottom-line deterioration was a contraction in gross margins combined with elevated revenue tax and statutory charges.

ATBA’s net sales dipped slightly by 1% year-on-year to Rs34.92bn, down from Rs35.20bn in FY25.

However, the cost of sales increased by 2% to Rs31.96bn, causing gross profit to shrink by 25% to Rs2.96bn compared to Rs3.96bn in the prior year.

On the operational front, administrative expenses were reduced by 13%  while distribution costs rose 10% to Rs1.64bn.

Other operating expenses fell 39% to Rs45.86m, and "other income" surged by 241% to Rs304.67m (up from Rs89.21m).

Despite these operational adjustments and non-operating income support, gross margin compression pulled profit from operations down by 45% to Rs993.69m.

Below the operating line, high borrowing costs continued to absorb earnings, with finance costs standing at Rs919.09m (down 23% from Rs1.19bn in FY25). This left profit before income tax, final tax, and revenue tax at Rs74.59m.

The financial position was heavily hit by tax outlays, including a 61% surge in revenue tax to Rs436.85m and final taxes of Rs17.51m, dragging the pre-tax position into a loss before income tax of Rs379.76m.

Even after booking a net tax credit of Rs9.08m, Atlas Battery Limited securely closed the fiscal year with an overall net loss of Rs370.69m.

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