Treet Corporation Limited (PSX: TREET), the maker of Treet and other razor blade brands, released its results for the three months to 30 September 2026 (the first quarter of its 2027 financial year) on 28 October. At group level, profit attributable to Treet’s shareholders rose 82% to Rs 257.6 M, or Rs 0.69 a share, from Rs 141.9 M (Rs 0.38) a year earlier. No dividend was announced.
The story is a tale of two parts: the core company had a strong quarter, while the subsidiaries shrank and lost more money. All figures are from the company’s unaudited statements. “Standalone” means Treet Corporation itself; “group” (consolidated) adds its subsidiaries and associate.
The core company: margins did the heavy lifting
| Standalone, Rs M | Jul to Sep 2026 | Jul to Sep 2025 | Change |
|---|---|---|---|
| Net revenue | 4,113.3 | 3,683.5 | +12% |
| Gross profit | 1,765.8 | 1,372.7 | +29% |
| Gross margin | 42.9% | 37.3% | +5.6 points |
| Distribution cost | 538.0 | 420.8 | +28% |
| Administrative expense | 418.9 | 396.3 | +6% |
| Profit from operations | 753.9 | 524.8 | +44% |
| Finance cost | 191.3 | 185.4 | +3% |
| Other income | 95.6 | 242.5 | −61% |
| Profit before tax | 658.3 | 553.8 | +19% |
| Tax | 265.0 | 172.0 | effective rate 40% |
| Profit after tax | 393.2 | 381.8 | +3% |
| Earnings per share (Rs) | 1.06 | 1.03 |
At first glance, standalone profit grew only 3%. That hides a much better underlying result. Last year’s quarter included a Rs 197.5 M one-off gain from selling a long-term investment, which inflated other income. Take that out and pre-tax profit from the business itself rose by roughly 85%. Revenue grew 12% and gross margin widened by more than five points to 42.9%, so operating profit jumped 44%. Distribution costs rose faster than sales (+28%), which points to heavier marketing or wider distribution, and the tax rate rose to 40%.
The group: subsidiaries shrank and lost more
| Group, Rs M | Jul to Sep 2026 | Jul to Sep 2025 | Change |
|---|---|---|---|
| Net revenue | 6,898.6 | 6,984.9 | −1% |
| Gross profit | 2,125.4 | 1,888.0 | +13% |
| Operating profit | 732.6 | 621.5 | +18% |
| Finance cost | 293.9 | 280.5 | +5% |
| Share of profit of associate | 32.4 | 27.1 | +20% |
| Profit for the period | 185.2 | 131.7 | +41% |
| Attributable to minority shareholders | (72.4) | (10.2) | larger loss |
| Attributable to Treet shareholders | 257.6 | 141.9 | +82% |
| Earnings per share (Rs) | 0.69 | 0.38 | +82% |
The group figures show what happened outside the core company. Group revenue fell 1% while the core company’s revenue grew 12%, which means the subsidiaries’ combined revenue fell by about 16% (from roughly Rs 3.3 bn to Rs 2.8 bn). The group’s total profit (Rs 185 M) was lower than the core company’s profit alone (Rs 393 M), so the subsidiaries made losses. Minority shareholders absorbed Rs 72 M of those losses, up from Rs 10 M last year, which is why the profit attributable to Treet’s own shareholders still rose 82%.
Recent quarters
| Quarter | Group profit to Treet shareholders (Rs M) |
|---|---|
| Jul to Sep 2025 | 141.9 |
| Oct to Dec 2025 | 74.3 |
| Jan to Mar 2026 | (1.1) |
| Apr to Jun 2026 | 532.8 |
| Jul to Sep 2026 | 257.6 |
Profits have been uneven from quarter to quarter, but the last two quarters were the strongest of the five, and the company earned Rs 2.02 a share in the year to June 2026 after mostly loss-making years before 2025.
Cash flow and balance sheet (core company)
- Operating cash flow was Rs 342.8 M, against an outflow of Rs 82.1 M a year earlier.
- Inventory came down from Rs 3,122 M to Rs 2,694 M, releasing cash, while money owed by customers rose from Rs 199 M to Rs 422 M and payables fell by about Rs 224 M.
- Capital spending was modest at Rs 97 M.
- Borrowings fell slightly: short-term borrowing of Rs 4,064 M (from Rs 4,150 M) and long-term loans of Rs 1,717 M including the current portion (from Rs 1,762 M). Against cash of Rs 703 M, net debt is about Rs 5.1 bn, roughly a third of the company’s Rs 14.8 bn equity.
- Long-term investments, mainly the subsidiaries, are carried at Rs 11.9 bn, almost half of the core company’s total assets.
Valuation snapshot
At the 27 October close of Rs 22.61:
| Measure | Value |
|---|---|
| Market value (371 million shares) | about Rs 8.4 bn |
| Group profit to shareholders, last four quarters | about Rs 864 M, or Rs 2.33 a share |
| Price to earnings, last four quarters | about 9.7 times |
| Group book value per share | about Rs 24.4 (price to book about 0.9) |
| Share price, last 52 weeks | low Rs 20.15, high Rs 36.17 |
| Change over one year | about −30% |
The share price has fallen about 30% over the past year even as profits recovered, so the stock now trades below book value. In the off-market data on our dashboard, TREET had three negotiated block trades worth about Rs 204 M in early October, at prices close to the market, which is about 2.4% of the company’s value changing hands privately.
What to watch next
- Margins. Can the core company hold a gross margin above 40% if input costs or competition change?
- The subsidiaries. Their revenue fell about 16% and their losses widened. A turnaround, a sale or a restructuring would change the group picture more than anything in the core business.
- Distribution costs. Rising faster than sales; worth checking that the spending keeps delivering growth.
- Dividends. None this quarter. With operating cash flow improving and debt edging down, payouts could become possible, but the company has not signalled one.
The bottom line
Treet’s core business is clearly in better shape: higher sales, much wider margins and positive operating cash flow, with last year’s one-off gain making the headline growth look smaller than it really is. The subsidiaries remain the weak link, shrinking and losing more money, and they explain why the group earns less than the core company on its own. For investors, the question is whether the strong core can carry the group while the subsidiaries are fixed.
You can follow TREET’s price, Pulse Score, fair value estimate and off-market block trades in the Market Pulse Hub dashboard under PSX.
Bilal, Market Pulse Hub
Source: Treet Corporation Limited, unaudited standalone and consolidated financial results for the quarter ended 30 September 2026, filed with the Pakistan Stock Exchange on 28 October 2026. Subsidiary figures, per-share and valuation figures are our calculations from those statements. This article is for education and information only and is not investment advice.