SLM FY26 profit crosses Rs13bn

August 17, 2026 (MLN): Service Long March Tyres Limited (PSX: SLM) reported a strong 35% increase in its consolidated net profit for the fiscal year ended June 30, 2026, reaching Rs13.50bn compared to Rs10.03bn in the preceding year.

Reflecting this solid bottom-line expansion, basic earnings per share (EPS) improved to Rs1.827 from Rs1.399 (restated) in FY25, while diluted EPS rose to Rs1.822 compared to Rs1.376.

The company also announced a cash dividend at Rs0.83 per share.

The primary driver behind this stellar performance was a powerful top-line expansion combined with reduced financial charges.

SLM’s revenue from contracts with customers surged by 44% year-on-year to reach Rs71.71bn, up from Rs49.84bn in FY25.

Although the cost of sales grew by 37% to Rs53.56bn, revenue growth outpaced direct production costs, allowing the company to secure a 69% surge in gross profit, which climbed to Rs18.15bn compared to Rs10.75bn in the prior year.

On the operational front, overheads expanded to support higher market activity and distribution channels.

Distribution costs rose 98% to Rs2.35bn, while administrative expenses increased 28% to Rs1.57bn. Despite higher operating outlays, strong gross margins propelled operating profit up by 71% to settle at Rs14.23bn.

Below the operating line, SLM benefited significantly from debt optimization.

Finance costs and other charges dropped by 33% to Rs752.63m (down from Rs1.12bn).

This interest cost relief, alongside a 10% increase in "other income" (Rs328.87m), comfortably absorbed an 88% increase in "other expenses" (Rs777.36m), pushing profit before taxation up by 83% to Rs13.03bn.

The company recorded a net tax credit of Rs469.38m for the year, compared to a tax expense of Rs2.92bn in FY25.

Supported by top-line volume gains, reduced finance costs, and tax benefits, Service Long March Tyres Limited securely closed the fiscal year with a 35% leap in final net profit, settling at Rs13.50bn.

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