October 30, 2025 (MLN):  TPL Trakker Limited (PSX: TPLT) reported a loss after tax of Rs72.85m for the quarter ended September 30, 2025, widening 94% from a loss of Rs37.54m in the corresponding quarter last year.

Loss per share increased 2.2 times to Rs0.39 compared to Rs0.18 in 1QFY25.

Net turnover declined 37% year-on-year to Rs446.31m from Rs709.81m, reflecting significantly weaker revenue generation during the quarter. Cost of sales and services decreased 20% to Rs339.86m from Rs422.52m.

Gross profit contracted 63% to Rs106.45m against Rs287.29m in 1QFY25, with the gross margin declining sharply to 23.9% from 40.5% in the prior year quarter, indicating severe margin compression despite lower cost of sales.

Distribution expenses declined 47% to Rs16.67m from Rs31.55m, while administrative expenses decreased 58% to Rs72.83m from Rs173.47m last year.

The company recorded an operating profit of Rs16.95m, down 79% from Rs82.27m in 1QFY25.

Research and development expenses declined 47% to Rs11.91m from Rs22.52m. Other expenses stood at Rs603,231 in 1QFY25, which were absent in the current quarter.

Finance costs declined 36% to Rs72.53m from Rs113.81m in the previous year, providing some relief to the bottom line. Other income decreased 60% to Rs14.55m from Rs36.38m last year.

Loss before taxation widened 2.8 times to Rs51.77m from Rs18.27m in 1QFY25.

Taxation increased 9% to Rs21.08m from Rs19.27m in the prior period.

The company concluded 1QFY26 with a loss for the period of Rs72.85m.

The widening loss was driven by a dramatic 37% decline in revenue, resulting in a 63% collapse in gross profit and severe margin compression from 40.5% to 23.9%, which could not be offset by lower administrative expenses and reduced finance costs, reflecting challenging market conditions and operational difficulties in the fleet management sector.