ATBA swings to Rs336m loss in 1QFY27

October 20, 2026 (MLN): Atlas Battery Limited (PSX: ATBA) swung into a net loss of Rs336.13m for the first quarter ended September 30, 2026 (1QFY27 / 3MFY27), compared to a net profit of Rs50.46m in the corresponding period last year.

Reflecting this bottom-line decline, basic and diluted earnings per share (EPS) turned negative to a loss per share (LPS) of Rs9.60, down from an EPS of Rs1.44 in 1QFY26.

The primary factors driving the quarterly loss were a 5% drop in net sales, sharp gross margin compression, and elevated borrowing costs.

Net sales for the quarter fell 5% year-on-year to Rs8.09bn, down from Rs8.48bn in 1QFY26.

However, cost of sales contracted by only 1% to Rs7.51bn, causing gross profit to shrink 34% to Rs580.33m compared to Rs882.31m in the prior-year period.

On the operational front, administration and distribution expenses were reduced.

Distribution costs edged down 1% to Rs426.15m, while administrative expenses contracted 10% to Rs134.82m.

Coupled with other operating expenses of Rs14.56m and "other income" of Rs27.25m, operating profit plummeted 90% to Rs32.05m.

Below the operating line, ATBA faced increased financial pressures as finance costs expanded 26% to Rs278.98m (up from Rs220.71m in 1QFY26). Factoring in final tax of Rs524 thousand and revenue tax of Rs101.17m, pre-tax losses deepened to Rs348.63m.

The company recorded a net deferred tax credit of Rs12.50m for the quarter (down from Rs53.71m in 1QFY26).

Top-line contraction, margin pressure, and rising financial charges led Atlas Battery Limited to close the three-month period with an after-tax loss of Rs336.13m.

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