EXIDE Q1 earnings drop 43%

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MG News | July 29, 2026 at 03:58 PM GMT+05:00

July 29, 2026 (MLN): Exide Pakistan Limited (PSX: EXIDE) reported a 43% decline in its consolidated net profit for the first quarter ended June 30, 2026, recording Rs127.41m compared to Rs223.32m in the corresponding period last year.

Reflecting this bottom-line contraction, the company's earnings per share (EPS) fell to Rs16.40 from Rs28.75 in SPLY.

The dip in earnings was primarily triggered by a double-digit drop in top-line revenue. EXIDE’s turnover posted a 25% year-on-year decrease, falling to Rs5.28bn from Rs7.05bn.

Although the company managed to reduce its cost of goods sold by 25% to Rs4.51bn, the revenue contraction outpaced direct production cost savings.

Consequently, the company's gross profit contracted by 25%, settling at Rs772.26m compared to Rs1.03bn in the prior year.

On the operational front, overheads saw moderate containment.

Distribution costs were slashed by 16% to Rs316.72m, which helped offset a 12% rise in administrative expenses (Rs69.57m).

Overall operating expenses dropped by 12% to Rs386.29m. Despite this cost-cutting, the gross margin contraction dragged the operating profit down by 35% to Rs385.98m.

Below the operating line, EXIDE found additional relief in non-operating expenses.

Financial charges declined by 9% to Rs170.21m, while "other operating charges" dropped significantly by 44% to Rs23.33m.

These savings brought the profit before taxation to Rs193.46m, reflecting a 47% drop from last year.

The company then absorbed a 54% lower taxation burden amounting to Rs66.05m (down from Rs142.79m in SPLY). Supported by the lighter tax impact, Exide Pakistan Limited securely closed the first quarter with its final net profit at Rs127.41m.

STATEMENT OF PROFIT OR LOSS FOR THE QUARTER ENDED JUNE 30, 2026 (Rs.000)

Description

2026

2025

change %

Turnover

5,283,910

7,049,445

-25.0%

Cost of goods sold

(4,511,650)

(6,016,798)

-25.0%

Gross profit

772,260

1,032,647

-25.2%

Distribution cost

(316,717)

(375,856)

-15.7%

Administrative expenses

(69,568)

(62,238)

11.8%

(Total Operating expenses)

(386,285)

(438,094)

-11.8%

Operating profit / (loss)

385,975

594,553

-35.1%

Other operating income

1,023

601

70.2%

Financial charges

(170,213)

(187,310)

-9.1%

Other operating charges

(23,329)

(41,732)

-44.1%

Profit/(Loss) before taxation

193,457

366,112

-47.2%

Provision for taxation - current

(66,049)

(142,788)

-53.7%

Provision for taxation - deferred

-

-

Profit/(Loss) after taxation

127,408

223,324

-42.9%

Profit/(Loss) per share (Rupees)

16.4

28.75

-43.0%

 

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