Karachi: Exide Pakistan Limited, a key player in the domestic battery manufacturing industry, has reported a significant downturn in its financial performance for the first quarter ending June 30, 2026. The company attributed this decline primarily to production constraints arising from supply chain disruptions caused by the Gulf war.
In its latest report, dated July 29, 2026, the company revealed a 25.04 percent decrease in net sales, dropping from Rs.7.049 billion to Rs.5.284 billion. The reduction in sales revenue significantly impacted the company's gross profit, which fell from Rs.1.033 billion to Rs.0.772 billion. Operating profit for the quarter stood at Rs.387 million, down from Rs.595 million in the same period last year. Profit before taxation dropped to Rs.193.47 million from Rs.366.12 million, while profit after taxation was recorded at Rs.127.42 million, a decline from Rs.223.34 million in the previous year. Consequently, earnings per share decreased from Rs.28.75 to Rs.16.40.
Despite the challenges faced by Exide Pakistan Limited, Pakistan's macroeconomic conditions showed signs of improvement during the fiscal year 2026. The country's GDP grew by 3.7 percent, compared to 3.18 percent in the previous year. Large-Scale Manufacturing rebounded with a 6.4 percent growth, and the agriculture sector posted a growth of 2.9 percent.
However, the trade deficit widened by 22 percent year-on-year to US$39.6 billion, spurred by an 8.1 percent increase in imports to US$69.7 billion and a 5.9 percent decline in exports to US$30.1 billion. Foreign Direct Investment saw a sharp decline of 33.9 percent, amounting to US$1.64 billion. According to information available from the Pakistan Stock Exchange (PSX), the country's foreign exchange reserves were reported at US$22.68 billion as of July 16, 2026, with the State Bank of Pakistan maintaining the policy rate at 11.50 percent.
In the automobile sector, a significant growth was observed during FY2026. Passenger car sales rose by 42 percent to 155,631 units, and sales of light commercial vehicles and pickup trucks surged by 40 percent to 50,814 units. Truck and bus sales increased by 61 percent to 8,424 units, while motorcycle and three-wheeler sales grew by 30 percent to 1,972,077 units. Tractor sales saw a minor move, declining by 1 percent to 28,791 units.
Exide Pakistan Limited is cautiously optimistic about the future. The company is focusing on improving product quality, enhancing productivity, and controlling costs to strengthen its market share and competitiveness. The management is prepared to face increased competition due to excess production capacity and subdued consumer purchasing power in the domestic battery industry.
The Federal Budget for FY2027 reflects the government's ongoing commitment to economic stabilization, balancing fiscal discipline with targeted relief measures to support economic activity. Pakistan is targeting a GDP growth of 4.0 percent for FY2027, up from the 3.7 percent achieved in FY2026.