Karachi: The Directors of Sitara Petroleum Service Limited (SPSL) have unveiled the company's annual report for the fiscal year ending June 30, 2026, highlighting robust financial results in the face of prevailing economic challenges. The report, released on October 8, 2026, underscores the company's strategic resilience and operational efficacy amid macroeconomic stabilization in Pakistan.
During the reported period, Pakistan's economy exhibited a notable transition towards stabilization, marked by a GDP growth rate of 3.7%, the highest in four years, and a reduction in the fiscal deficit to 0.7% of GDP. The external sector was bolstered by USD 4.8 billion in cumulative IMF disbursements, elevating foreign exchange reserves to over USD 20 billion. This economic environment buoyed investor confidence, resulting in a 44% surge in the KSE-100 index, a benchmark of the Pakistan Stock Exchange's performance.
The downstream petroleum marketing and oil distribution industry, including SPSL, operated amidst severe global disruptions, particularly due to geopolitical tensions involving the United States and Iran. This conflict caused significant volatility in crude oil procurement and international fuel supply chains. Despite these challenges, domestic energy consumption remained resilient, driving economic activity across the nation.
According to information available from the Pakistan Stock Exchange (PSX), Sitara Petroleum Service Limited achieved net sales of Rs 133.225 million, marking a 9.25% increase over the previous year's sales of Rs 121,947 million. Gross profit rose significantly to Rs 8,045 million from Rs 5,515 million, with a gross margin improvement to 6.04%. Profit before interest, levy, and taxation also saw a substantial increase to Rs 7,129 million, reflecting effective cost management and optimized supply sourcing.
Furthermore, the company's profit before tax reached Rs 5.207 million, compared to Rs 3,217 million last year, while profit after tax surged to Rs 4,976 million from Rs 2,951 million in FY 2025. The net profit margin improved to 3.73%, signifying enhanced bottom-line efficiency. SPSL's balance sheet strengthened, with total equity climbing to Rs 18.001 million and total assets expanding to Rs 27.246 million, supporting operational and distribution scalability.
In terms of financial ratios, the current ratio improved to 2.20, indicating robust liquidity, while asset turnover normalized to 4.89. The company's earnings per share stood at Rs 3.46, reflecting its strong financial performance and strategic asset utilization.
As SPSL looks forward, the downstream oil marketing sector anticipates further expansion, driven by infrastructure investments and an expanding corporate fleet network, positioning the company for sustainable growth in the years to come.