EXIDE

⚡ Flash Summary

Exide Pakistan Limited reported a decrease in net sales revenue for the half year ended September 30, 2025, with revenue decreasing by 19.7% from Rs. 13.82 billion to Rs. 11.10 billion. This decline is attributed to reduced sales volumes and lower prices. Consequently, gross profit also decreased from Rs. 2.36 billion to Rs. 1.74 billion. Profit after tax saw a significant reduction, falling from Rs. 505.71 million to Rs. 277.4 million, and earnings per share (EPS) decreased from Rs. 65.10 to Rs. 35.71.

📌 Key Takeaways

• 📉 Net sales revenue decreased by 19.7%, from Rs. 13.82 billion to Rs. 11.10 billion.
• 📉 Gross profit decreased from Rs. 2.36 billion to Rs. 1.74 billion due to lower sales and margins.
• ✅ Selling and distribution expenses decreased by 20.4%, from Rs. 970.83 million to Rs. 772.47 million.
• ⚠️ Administrative and general expenses increased slightly by 1.02%, from Rs. 139.02 million to Rs. 140.44 million.
• 📉 Operating profit decreased from Rs. 1.184 billion to Rs. 0.776 billion.
• ✅ Financial charges decreased to Rs. 322.82 million from Rs. 355.26 million due to lower mark-up rates.
• 📉 Profit before tax decreased from Rs. 829.03 million to Rs. 453.08 million.
• 📉 Profit after tax decreased from Rs. 505.71 million to Rs. 277.4 million.
• 📉 Earnings per share (EPS) decreased from Rs. 65.10 to Rs. 35.71.
• ⚠️ Trade deficit widened by 34% to US$ 9.4 billion, impacting the overall economic environment.
• ⚠️ Foreign direct investment dropped by 34% to US$ 568.8 million, reflecting concerns about long-term growth.
• 📈 Auto sector sales increased by 53%, but tractor sales fell, indicating mixed industry performance.
• 🏭 Production activities were strategically planned to align with market demand, focusing on quality.
• 😬 Future prospects indicate increased competition and potential impact on profitability due to overcapacity.
• 🤝 Acknowledgement to stakeholders, indicating continued support and guidance.

🎯 Investment Thesis

Based on the current financial performance and market outlook, a SELL recommendation is warranted for Exide Pakistan Limited. The significant decrease in revenue, profitability, and EPS indicates substantial challenges in the company’s operations. Increased competition, overcapacity, and macroeconomic instability pose further risks. A price target of Rs. 25 is set, based on discounted cash flow (DCF) analysis and comparative valuation with industry peers. The time horizon for this recommendation is medium-term, reflecting the potential for further deterioration in financial performance if the company fails to address its operational and market challenges.