Lahore: The Board of Directors of Treet Battery Limited (TBL) released the financial results for the first quarter of the fiscal year 2026, detailing a challenging period marked by a considerable decline in sales and profitability.
The report, dated October 30, 2026, highlighted that for the quarter ending on September 30, 2026, the company faced a 30.5% decline in net sales, falling to Rs. 1,301 million from Rs. 1,871 million in the same quarter of the previous year. This significant move underscored the difficulties faced by Treet Battery in the current economic climate. Gross profit also decreased sharply to Rs. 168 million, down from Rs. 296 million, marking a very large move of 43.2%.
The financial strain continued at the bottom line, where Treet Battery reported a net loss of Rs. 195 million, a further deterioration from the Rs. 118 million loss in the corresponding period last year. This 65.4% widening of losses reflects the intensified competition and shifting consumer preferences in the battery market.
The economic environment during this period was characterized by high inflation and a monetary policy stance described as cautious by the government. According to information available from the Pakistan Stock Exchange (PSX), the average Consumer Price Index (CPI) inflation for the quarter was 10.20%, a stark increase from 4.30% during the same period the previous year. The State Bank of Pakistan (SBP) maintained its policy rate at 11.5% and projected a decline in inflation to the 5 to 7% range by June 2027.
The rise in inflation was driven primarily by increased prices for wheat, food, and energy, exacerbated by geopolitical tensions in the Middle East. These factors led to elevated transport costs and eroded consumer purchasing power, prompting a shift towards more affordable products and intensifying price competition in the market. The lead-acid battery sector, in particular, faced severe pricing pressures due to aggressive discounting and competition from imported lithium-ion batteries.
In response to these challenges, Treet Battery plans to maintain its market share through quality assurance and innovation. The company aims to launch new products and enhance after-sales services while focusing on operational efficiency and cost management. Treet Battery also intends to explore new markets and expand its product portfolio to adapt to the evolving market dynamics.
As Treet Battery navigates these turbulent economic conditions, the company's strategic emphasis on innovation and operational efficiency will be crucial in its efforts to stabilize and improve its financial performance in the coming quarters.