⚡ Flash Summary

Treet Battery Limited (TBL) reported a modest revenue increase and a significant turnaround in profitability for the financial year ending June 30, 2025. Revenue grew marginally to Rs. 8.84 billion, while net profit increased substantially from a loss of Rs. 377 million to a profit of Rs. 40 million. This improvement was driven by double-digit volume growth, stronger OEM partnerships, and new product launches including lithium-ion solutions. The company remains committed to innovation, quality, and financial discipline, focusing on scaling in traditional and emerging segments and leveraging partnerships.

📌 Key Takeaways

• 📈 Modest revenue growth to Rs. 8.84 billion, up from Rs. 8.73 billion.
• ✅ Net profit turnaround from Rs. -377 million to Rs. 40 million, a 111% increase.
• 💰 Gross profit edged up by 2.0% to Rs. 1.765 billion.
• Operating profit improved significantly by 13.0% to Rs. 969 million.
• 💪 Double-digit volume growth supported success.
• 🤝 Strengthened OEM partnerships are contributing.
• 🚀 New product launches in automotive and solar segments are helping.
• 🔋 Entry into lithium-ion solutions positions TBL for future growth.
• 📉 Finance costs decreased significantly by 27% from Rs. 1.265 billion to Rs. 921 million.
• 🌐 Macroeconomic stabilization (lower inflation, reduced interest rates) becoming more visible.
• ⚠️ Economy still fragile, constrained by weak industrial activity.
• 🌱 Continued focus on innovation and quality is expected.

🎯 Investment Thesis

HOLD. Treet Battery Limited has shown significant improvement in financial performance with a notable turnaround to profitability, driven by various strategic and operational improvements. However, macroeconomic uncertainties and weak industrial activity in Pakistan introduce risks. Until there’s more certainty about long-term sustainable growth, a HOLD recommendation is appropriate. The price target rationale is the company’s strong commitment to innovation and technology.