May 21, 2026
Tropical Battery Company Limited (TROPICAL)
Unaudited financials for the six months ended March 31, 2026:
Tropical Battery Company Limited (Tropical) for the six months ended March 31, 2026 reported a 3% increase in Revenue totaling $3.26 billion compared to $3.17 billion in the corresponding period last year. Revenue for the second quarter had a marginal increase to close at $1.63 billion compared to $1.63 billion for the comparable quarter of 2025.
Year to date, Cost of sales amounted to $1.99 billion (2025: $2.12 billion), this represents a decrease of 6% year over year. Consequently, gross profit increased by 23% to $1.28 billion compared to $1.04 billion for the six months ended March 31, 2025. The company booked gross profit of $613.14 million for the second quarter versus $566.64 million reported for the similar quarter of 2025.
Administrative, marketing and selling expenses increased by 14% to close at $993.99 million (2025 restated: $869.78 million). Consequently, operating profit increased by 64% from $171.22 million in 2025 to $281.07 million in the period under review. Notably, other operating income for the six months ended March 31, 2026, amounted to $73.78 million, a 1,277% increase relative to $5.36 million reported in 2025, supported by a one-off non-cash gain of $51.64 million on the fair-value remeasurement and extinguishment of contingent consideration related to the January 2024 Rose Batteries acquisition.
Profit before depreciation, net finance costs and taxation (EBITDA) for the six months ended March 31, 2026, amounted to $354.84 million, a 101% increase relative to $176.58 million reported in 2025. Profit before depreciation, net finance costs and taxation for the second quarter amounted to $133.13 million (2025: $134.12 million). Depreciation and amortization totaled $94.24 million, a 41% increase from the corresponding period last year (2025: $66.64 million).
Finance costs for the six months amounted to $272.61 million compared to $266.37 million reported in 2025. Finance income totaled $68.61 million versus $49.73 million in the prior period. As a result, Net finance costs for the six months ended March 31, 2026, amounted to $204.00 million, a 6% decrease relative to $216.64 million reported in 2025. Net finance costs for the second quarter amounted to $89.04 million (2025: $106.18 million).
The tax charge incurred for the six months ended March 31, 2026, amounted to $19.35 million (2025: $141,000). Net profit for the six months amounted to $37.25 million, a turnaround from the net loss of $106.84 million reported in 2025. For the second quarter, Net loss was $14.48 million (2025: net loss of $3.91 million).
Net profit attributable to shareholders amounted to $24.42 million (2025: net loss attributable to shareholders of $100.26 million).
Consequently, Earnings Per Share for the six months amounted to $0.0141 (2025: LPS: $0.0732), while Loss Per Share for the quarter totaled $0.0197 (2025: LPS: $0.0040). The twelve-month trailing EPS was $0.10, and the number of shares used in these calculations was 1,741,890,573.
Notably, Tropical’s stock price closed the trading period on May 20, 2026, at a price of $1.42 with a corresponding P/E ratio of 13.67x.
Balance Sheet Highlights
The company’s assets totaled $7.95 billion (2025: $7.76 billion). The movement in total assets was attributable to a 55% increase in ‘Cash and cash equivalents’ to $341.36 million (2025: $220.86 million), a 5% increase in ‘Property, Plant and Equipment’ to $1.32 billion (2025: $1.25 billion), and a $66.37 million increase in ‘Goodwill’ to $2.97 billion (2025: $2.90 billion). Conversely, ‘Inventories’ decreased by 17% to $1.36 billion (2025: $1.64 billion).
Shareholder’s equity attributable to owners was $1.62 billion (2025 restated: $913.72 million), representing a book value per share of $0.93 (2025: $0.67).
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