February 27, 2026 (MLN): Atlas Battery Limited (PSX:ATBA) reported a net profit of Rs52.63m for the half-year ended December 31, 2025, a steep 68% decline from the Rs165.41m profit recorded in the same period last year.

The company's earnings per share (EPS) shrank to Rs1.50 from Rs4.72 in the corresponding period of the previous year.

The company faced pressure at the top line, with net sales dropping 8% year-on-year to Rs15.56bn from Rs17.01bn.

Cost of sales declined at a slightly slower pace of 6%, falling to Rs13.96bn from Rs14.92bn.

Because the drop in revenue outpaced the reduction in direct costs, gross profit plunged 24% to Rs1.60bn from Rs2.09bn in the prior period.

Consequently, the gross profit margin contracted to 10.3% from 12.3% in H1 FY2025, reflecting tighter pricing or higher unit costs.

On the operating side, distribution costs increased by 7% to Rs791.65m from Rs738.57m.

This was partially offset by a 5% decrease in administrative expenses (Rs297.19m) and a significant 45% drop in other expenses (Rs30.19m).

However, weighed down by the much lower gross profit, profit from operations effectively halved, dropping 49% to Rs524.62m from Rs1.03bn.

Below the operating line, the company saw some relief as finance costs decreased 28% to Rs433.61m from Rs605.85m.

The company booked a net positive income tax benefit of Rs149.22m for the period (compared to a tax expense of Rs173.28m last year).

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