TREET profit drops 38% in 9MFY26

April 29, 2026 (MLN): Treet Corporation Limited (PSX: TREET) reported a 37.51% year-on-year contraction in profit for the period for the nine months ended March 31, 2026, recording Rs200.37m compared to Rs320.64m in the corresponding period last year.

Profit attributable to the group stood at Rs215.02m, a 28.54% decline from Rs300.89m in 9MFY25.

The company's basic and diluted earnings per share (EPS) declined 28.40% to Rs0.58, down from Rs0.81 in 9MFY25, reflecting meaningful value erosion for shareholders during the period.

TREET's net revenue declined marginally by 1.01% to Rs18.99bn from Rs19.19bn. Cost of revenue contracted at a faster pace of 4.06% to Rs13.48bn from Rs14.05bn, providing a favourable cost dynamic.

This allowed gross profit to expand by 7.32% to Rs5.51bn from Rs5.14bn.

Administrative expenses, however, rose sharply by 37.34% to Rs1.54bn from Rs1.12bn, while distribution costs increased 11.59% to Rs2.22bn.

The combined overhead pressure resulted in operating profit declining 14.03% to Rs1.69bn from Rs1.97bn.

Finance costs declined by a meaningful 39.01% to Rs835.18m from Rs1.37bn, providing a significant tailwind.

Other income swung to a marginal charge of Rs3.56m against income of Rs227.45m in the prior year, partly offsetting the finance cost relief. The share of profit from associates nearly tripled to Rs123.87m from Rs42.37m, providing a positive contribution.

Profit before levies and income tax stood at Rs977.45m, a 12.47% increase from Rs869.11m in 9MFY25.

Minimum tax differential and final tax declined by 43.74% and 55.83% to Rs74.17m and Rs48.93m respectively, providing meaningful relief. Profit before income tax consequently rose 36.37% to Rs854.36m from Rs626.51m.

Taxation charges rose substantially, with group taxation doubling to Rs568.80m from Rs271.53m and associate taxation rising to Rs85.19m from Rs34.34m, collectively absorbing the pre-tax gains and compressing the bottom line.

After accounting for total taxation, Treet Corporation Limited closed the nine-month period with a profit for the period of Rs200.37m, representing a 37.51% contraction over the Rs320.64m reported in the corresponding period of last year.

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