Treet Battery escapes the red in 1HFY26

February 25, 2026 (MLN): Treet Battery Limited (PSX:TBL) reported a net profit of Rs19.46m for the half year ended December 31, 2025, marks a significant turnaround from the Rs142.09m net loss recorded in the same period last year.

The company's earnings per share improved to Rs0.02, recovering from a loss per share of Rs0.16 in the corresponding period of the previous year.

The company's net revenue from contracts with customers declined 16% year-on-year to Rs3.52bn from Rs4.20bn.

Cost of sales decreased 18% to Rs2.74bn from Rs3.34bn, resulting in a gross profit of Rs780.77m, down 9% from Rs858.72m in the prior period.

Despite the drop in gross profit, the gross profit margin improved to 22.2% from 20.4% in H1 FY2025, indicating better cost control relative to the lower sales volume.

The net profit margin stood at 0.6%, reflecting a return to bottom-line profitability after operating at a negative margin in the same period last year.

Selling and distribution expenses increased 7% to Rs429.69m from Rs401.83m, while administrative and general expenses rose 18% to Rs63.73m from Rs54.10m. Other operating expenses surged 94% to Rs10.51m.

Profit from operations fell 30% to Rs276.85m from Rs397.37m in H1 FY2025, primarily due to the lower gross profit and higher operating expenses.

Other income decreased 30% to Rs52.75m from Rs74.94m.

However, finance costs plummeted by a massive 53% to Rs260.93m from Rs555.39m. This sharp reduction in financing expenses was the critical factor that alleviated pressure on the bottom line.

The company recorded a minimal taxation expense of Rs286,000, slightly down 7% from Rs307,000 in the corresponding period last year.

The substantial 53% drop in finance costs was the key driver that allowed the company to swing back into profitability at the net level, successfully offsetting the 30% drop in operating profit.

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