Lahore: Service Industries Limited, an investment holding entity known for its diversified portfolio, reported a mixed financial performance for the half year ending June 30, 2026. The company, which primarily operates in the manufacturing of tyres, tubes, auto spare parts, and footwear, revealed significant shifts across its financial metrics, according to a recently published directors' review report.
On August 28, 2026, Service Industries Limited's directors presented their findings, highlighting the company's unconsolidated and consolidated financial statements. The unconsolidated revenue dropped by 29% to Rs. 2.83 billion, down from Rs. 3.99 billion in the same period last year. However, the company experienced a substantial increase in net profit after tax, which rose by 156% to Rs. 857 million from Rs. 335 million. This growth was driven by a 63% increase in dividend income from subsidiaries and a decrease in finance costs.
According to information available from the Pakistan Stock Exchange (PSX), Service Industries Limited's consolidated performance painted a different picture. The group's net revenue increased by 21% to Rs. 84.75 billion, compared to Rs. 70.29 billion in the previous year. Gross profit surged by 41% to Rs. 22.41 billion, and operating profit rose by 56% to Rs. 13.44 billion. The company's profit before levy and taxation doubled, showing a 101% increase to Rs. 11.21 billion.
In particular, the Tyre Segment demonstrated a significant impact on the group's consolidated results. Net sales in this segment grew by 30% to Rs. 64.40 billion, spurred by disciplined pricing and operational efficiencies. Despite these gains, the Footwear Segment faced challenges, with net sales declining by 4% to Rs. 18.0 billion, attributed mainly to a 15% decline in export sales. However, gross profit increased to Rs. 6.2 billion, aided by strategic procurement and cost control.
Service Industries Limited also announced a 10-for-1 subdivision of its ordinary shares, approved at the Extraordinary General Meeting on August 04, 2026. This adjustment reduced the face value from Rs. 10 to Rs. 1 per share, affecting the reported earnings per share for all periods.
Anticipating future growth, the company has several strategic initiatives underway. Service Long March Tyres Limited completed a landmark listing on the Pakistan Stock Exchange, raising Rs. 7.77 billion, aimed at expanding its Passenger Car Radial Tyre Project. Additionally, Service Tyres (Private) Limited has incorporated a wholly owned subsidiary, Service Tyres International (Private) Limited, to explore further expansion opportunities.
The Footwear Segment is poised for recovery, with strategic customers confirming new production lines and resuming orders. The export footwear division is expected to experience a gradual recovery through disciplined cost management.
Overall, Service Industries Limited's financial results indicate a robust performance on a consolidated basis, driven by strategic expansions and operational efficiencies, despite a decline in unconsolidated revenue.