Atlas Battery Limited (ATBA) reported earnings per share of PKR 2.60 for FY25, compared to PKR 38.37 in FY24. Furthermore, in 4QFY25, the company reported earnings per share of PKR 2.15, compared to earnings per share of PKR 16.84 in the same period last year (SPLY).
Management reported a 10% decline in AMB sales within the replacement market, while MCB volumes rose by 22%. A visible shift in consumer demand from heavy to medium sized batteries has been observed, leading to lower average realizations. In the lead acid battery segment, the company does not foresee any major threat from imports.
However, management expressed concerns about the rising influx of lithium iron batteries, where premium coated imported variants could pressure local manufacturers. Management does not expect margins to improve over the next two years, citing the demand shift from heavy to medium vehicles the heavy segment previously contributed a higher share to profitability. Approximately 82% of total sales originate from the replacement market, primarily within the automotive segment.
According to management, Pakistan’s total battery demand stands near 10 million units annually, with Atlas Battery’s market share at around 20%. Despite broader macroeconomic headwinds, the impact has not yet fully reflected in sales volumes, though the company recorded a 6–7% YoY decline in unit sales.
Management continues to focus on operational efficiencies and will successfully pass through around 80–90% of cost benefit to customers. In the lithium-iron battery market, management noted that traders benefit more than manufacturers, as over 20 importers are sourcing surplus stock from China, and dumping where there is demand in the market. Medium-sized batteries, used both in vehicles and energy storage.
The transition from heavy to medium batteries is being driven by energy efficient electrical appliances and growing adoption of lithium technology, which together are reshaping consumer demand patterns. Lithium iron battery manufacturing in Pakistan remains unviable due to high Capex requirements, though partial or full-scale assembly is feasible locally.
Management plans to enter the lithium-iron space by next year, this would be a low Capex project, which may intensify market competition.
Important Disclosures
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