Exide Pakistan Limited (the Company) is a limited liability company and is incorporated in Pakistan. The address of its registered office is A-44, Hill Street, Manghopir Road, S.I.T.E, Karachi, Pakistan. The Company is listed on the Pakistan Stock Exchange.

EXIDE Pakistan Limited (“EXIDE” or “the Company”) was incorporated in 1953 as a private limited company in technical collaboration with Chloride Group PLC, United Kingdom, a global battery manufacturer with operations in over 30 countries at that time. The Company commenced local manufacturing with technical support from Chloride Technical and was subsequently listed on the Karachi Stock Exchange (now PSX) in 1982. Over the decades, EXIDE has evolved into one of Pakistan’s leading manufacturers and suppliers of lead-acid batteries, offering diversified power-storage solutions for the automotive, household inverter/backup, industrial, and network segments. In addition to its core battery portfolio, the Company has expanded into complementary segments including chemicals, industrial acids, and integrated solar-energy solutions. EXIDE maintains a strong domestic footprint supported by an extensive distribution network and also caters to select export markets, notably Afghanistan. The Company is primarily owned by the Hashwani family through associated shareholdings, reflecting longstanding sponsor commitment and continuity of strategic direction.

EXIDE Pakistan Limited operates as a fully integrated manufacturer and supplier of power-storage solutions, with its core activities focused on the production of automotive, industrial, UPS, telecom, and solar-compatible lead-acid batteries, alongside the manufacturing of chemicals and industrial acids. The Company’s operational footprint comprises battery production facilities located at S.I.T.E., Karachi, and Hub, Balochistan, while its chemical and acid plants operate from S.I.T.E. and Bin Qasim, Karachi. EXIDE’s diversified product range supports multiple end-user segments, including vehicles, household backup systems, solar installations, telecom networks, and industrial grid applications. In response to the growing demand for alternative energy, the Company has also expanded into integrated solar-energy solutions for residential, commercial, and industrial customers. Its nationwide dealership and distribution network—complemented by warehouses and service centers in major cities such as Lahore, Rawalpindi, Peshawar, and Multan—provides strong market accessibility and ensures effective warranty and after-sales support. Over decades of operations, EXIDE has built a well-established brand presence, supported by extensive operational infrastructure and a broad customer base across the country.

EXIDE is majority-owned by the Hashwani Family (~75.54%) while the Financial Institutions and other companiesown about ~16.24% with the general public holding ~8.22% of the company shares

The ownership structure has remained largely stable over previous years and is expected to remain unchanged in the near future, as it is primarily dominated by the company’s sponsors. The presence of financial institutions further supports the stability of the ownership, providing additional oversight and confidence in the company’s governance framework.

The business acumen of Exide Pakistan Limited’s leadership, particularly the sponsoring Hashwani family, is considered strong, built over decades of experience. The family has been leading the company since 1991, with key figures such as Arif Hashwani (Chairman) and Altaf Hashwani (Non-Executive Director) guiding strategic initiatives, while Arshad Shahzada (MD/CEO) brings extensive professional experience across industries. The management’s deep understanding of the battery manufacturing business has supported Exide’s sustained market position. The sponsors have also demonstrated their capability through successful diversification into other sectors, notably the textile retail industry with the “Sana Safinaz” brand, providing additional financial strength to support the company. Since its incorporation in 1953 in association with the UK’s Chloride Group PLC, Exide has remained a prominent player in the Pakistani market, receiving multiple Top 25 Companies Awards and Corporate Excellence Awards, and expanding its offerings to include solar energy solutions, reflecting sound professional management and strategic foresight.

The financial strength of Exide Pakistan Limited is considered good, supported by the robust backing of its main sponsors, the Hashwani family, who possess a strong financial profile with diversified investments across sectors such as textiles, retail, and other businesses. On a consolidated basis, the company reported a topline of PKR 23,895 million and an equity base of PKR 6,822 million as of March 2025. The sponsors’ financial capacity and diversification provide additional stability and support to the company’s operations and growth initiatives, underpinning confidence in its long-term financial resilience.

The overall control of Exide Pakistan Limited vests with its eight-member Board of Directors, comprising the CEO, CFO, executive directors, and independent directors. The Board is led by Mr. Arif Hashwani (Chairman), a member of the sponsoring family with over 30 years of association, ensuring continuity and strategic oversight. The Hashwani family, holding approximately 75% of the company’s shares, maintains control, with Arshad Shahzada (MD/CEO) managing day-to-day operations, supported by family members and other directors. The Board oversees strategy, governance, and operational performance, balancing family interests with those of financial institutions. Key members include Arif Hashwani (Chairman), Arshad Shahzada (MD/CEO), Syed Haider Mehdi (CFO & Executive Director), along with Altaf Hashwani, Hussain Hashwani, Zaver Hashwani, Mrs. Navin Salim Merchant, and Mr. Amin Manji. The structure reflects strong sponsor control while incorporating independent oversight and professional management.

The Board of Exide Pakistan Limited reflects strong business acumen, combining long-standing family leadership with professional and independent oversight. Mr. Arif Hashwani (Chairman & Non-Executive Director) has led strategic initiatives since 1991, driving growth and diversification. Mr. Altaf Hashwani (Non-Executive Director), appointed in 1991, has expertise in supply chain management and currently serves as CEO of SSFR (Pvt) Limited. Mr. Hussain Hashwani (Non-Executive Director) brings business experience from his long association with Hassanali Sons. Ms. Zaver Hashwani (Non-Executive Director), a Wharton business graduate, serves as director at SSFR (Pvt) Limited. Mr. Arshad Shahzada (MD/CEO) has been associated with Exide since 1986, leading operations post-merger with extensive industry experience and an Electrical Engineering degree from UET Lahore. Mr. Syed Haider Mehdi (CFO & Executive Director), with Exide since 1992 and Executive Director since 2004, is a qualified accountant and corporate secretary. Mrs. Navin Salim Merchant (Independent Director), serving since 2021, is a law graduate, certified director, and senior partner at Merchant Law Associates with multiple board appointments. Mr. Amin Manji (Independent Director), appointed in 2023, brings over 30 years of global experience in financial services and IT, currently serving as SEVP and Group Chief for IT at National Bank of Pakistan. Collectively, the Board combines sponsor control with professional expertise and independent oversight, supporting effective governance and strategic decision-making.

The Board of Exide Pakistan Limited operates with structured oversight, supported by the Audit Committee and the Human Resource Committee (HR Committee) to assist in monitoring operational and financial matters. Board meetings are held regularly, with detailed agendas circulated in advance and comprehensive minutes maintained. Director attendance is robust, reflecting active engagement and commitment to governance, strategic oversight, and effective decision-making.

Exide Pakistan Limited’s financial statements for the year ended March 2025 were audited by Yousuf Adil & Co., a firm listed in the “A” category on the SBP’s panel of auditors. The auditors expressed an unqualified opinion, reflecting transparency, adherence to accounting standards, and reliability of the company’s financial reporting.

Exide Pakistan Limited operates a multi-tiered organizational structure designed to ensure professional oversight and operational efficiency. The company is led by the Board of Directors, chaired by Mr. Arif Hashwani, and the CEO, Mr. Arshad Shahzada, supported by the management team, including the CFO, Mr. Syed Haider Mehdi. The organization is structured across key functions: Finance & Accounts, Sales & Marketing, Production (Plant), Supply Chain, Information Technology (IT), and Human Resources (HR), with specialized departments and committees, including Audit and HR Committees, providing additional governance. This layered structure supports Exide’s core battery manufacturing and energy solutions operations, ensuring effective decision-making, compliance, and strategic management across all business functions.

Exide Pakistan Limited’s management team combines long-standing experience with strong technical and functional expertise. Mr. Arshad Shahzada (CEO/MD), a Bachelor of Engineering, has been associated with the company for over three decades and oversees strategic, operational, and financial decisions. Mr. Syed Haider Mehdi (CFO, FCMA), with over 40 years of experience and 30 years at Exide, manages financial strategy and reporting. Other key members include Mr. Muhammad Arshad Amir (Country Head Sales & Marketing, MBA), responsible for sales and market operations, and Mr. Shahzad Rashid (General Manager Plant, B.Eng.), overseeing production. The management team’s long tenure and technical proficiency support effective decision-making, operational continuity, and strategic execution across the company’s battery manufacturing and energy solutions business.

Exide Pakistan Limited maintains a well-defined and functional organizational structure, with each department head accountable for departmental operations and reporting directly to the CEO. The management is supported by experienced leadership and integrated IT systems (SAP), which facilitate operational efficiency and decision-making. While the structure is generally effective, formalizing management committees and documenting their meeting minutes could further strengthen inter-departmental coordination and enhance overall management effectiveness.

EXIDE Pakistan’s core operating software is “SAP Enterprise ECC 6.0 EHP 5” implemented at the head office, allmanufacturing sites. Various modules have been implemented including Sales & Distribution, Materials Management, Production Planning, Financials, Controlling, and Human Resource Management.

The principal business operation of the company is manufacturing batteries, chemicals, and acid. The company deploys state-of-the-art technology for producing batteries while ensuring that the production processes complywith local and international standards.

The sales and production of batteries in Pakistan are closely linked to energy shortfalls, developments in the automobile sector, and growth in backup power and renewable energy solutions. The organized market is dominated by Exide, Atlas Battery, and Pakistan Accumulators (Volta & Osaka), with significant presence in automotive, industrial, and inverter segments. During FY24, total battery production declined by ~13% YoY to ~8.7 million units, reflecting subdued demand from the automobile sector amid the economic slowdown. However, in 3MFY25, production increased to ~2.4 million units, a YoY rise of ~4.3%, driven by improved macroeconomic indicators and a ~25% YoY rebound in automobile production. Demand for heavy and medium-sized batteries continues to be supported by power shortages, particularly during summer, and the growing adoption of solar energy solutions. Looking ahead, the initiation of Electric Vehicle (EV) assembling projects, including locally assembled Hybrid Electric Vehicles (HEVs) and Battery Electric Vehicles (BEVs), is expected to drive demand for low-maintenance hybrid batteries. Additionally, developments in local lithium mining and battery manufacturing by groups like HUBCO are likely to shape future growth in the lithium-ion segment. Overall, despite macroeconomic volatility, the battery industry demonstrates resilience, supported by replacement demand, renewable energy adoption, and a recovering automotive sector.

EXIDE is one of the big players in the industry. As per the Exide management representation the Company has a market share of ~16% with a slight improvement in margins.

During 3MFY26, Exide Pakistan Limited posted net sales of PKR 7,049 million, reflecting an 18% YoY growth . For FY25, annual sales clocked in at PKR 23,895 million, down by ~6.9% YoY compared to PKR 25,668 million in FY24. The topline contraction in FY25 stemmed from reduced automotive battery volumes and muted demand from OEMs, partly offset by modest recovery in the solar and industrial segments.

The gross profit margin stood at 14.6% in 3MFY26 (FY25: 16.2%; FY24: 18.9%), reflecting continued pressure from elevated raw material and energy costs amid limited pricing flexibility. The operating margin also declined to 8.4% (FY25: 7.9%; FY24: 12.5%), while the net profit margin improved marginally to 3.2% in 3MFY26 (FY25: 2.6%; FY24: 4.9%). The moderation in profitability continues to be driven by higher financing costs and increased competitive pricing in the replacement market.

Exide continues to pursue growth through market and product diversification. The company is expanding its customer base and geographic reach, supported by additions to its product portfolio such as tubular and MF batteries. Management remains focused on closely tracking performance against financial projections to guide uture growth.

The net working capital cycle lengthened to 121 days as of 3MFY26 (FY25: 120 days; FY24: 78 days), driven by higher receivable days (58 days) and sustained inventory buildup (88 days) to support seasonal demand. The current ratio improved to 4.7x (FY25: 3.8x; FY24: 2.5x), reflecting a stronger liquidity buffer amid slower payables turnover (26 days). The Company continues to rely on short-term bank lines to finance its working capital needs.

During 3MFY26, EBITDA-to-finance cost deteriorated to (1.4)x (FY25: 4.1x; FY24: 4.8x), reflecting seasonality and front-loaded costs in the initial quarter. Conversely, FCFO-to-finance cost weakened to (2.1)x (FY25: 0.9x; FY24: 2.9x), owing to negative operating cash flows of PKR 384 million in the period. Sustained improvement in operating cash generation and cost optimization will remain key to restoring coverage strength over the coming quarters.

As of June 2025, total borrowings stood at PKR 5,800 million, up from PKR 5,499 million in FY25 and PKR 2,863 million in FY24. Short-term debt comprised ~96.9% of total borrowings, indicating heavy reliance on working capital financing. Consequently, the leverage ratio increased slightly to 45.4% (FY25: 45.6%; FY24: 33.1%). Despite higher gearing, the Company maintains adequate equity backing of PKR 6,969 million, providing moderate financial flexibility. Future debt rationalization and improved operating cash flows will be essential to maintain a stable capital structure.