SPSL 1QFY27 profit falls 48%

October 29, 2026 (MLN): Sitara Petroleum Service Limited (PSX: SPSL) reported a 48% decline in its net profit for the first quarter ended September 30, 2026 (1QFY27 / 3MFY27), posting Rs671.67m compared to Rs1.29bn in the corresponding period of the previous fiscal year.

Reflecting the reduced bottom line, basic and diluted earnings per share (EPS) for the three-month period contracted 48% to Rs0.40, down from Rs0.77 recorded in 3MFY26.

The contraction in earnings was primarily driven by a sharp 65% drop in top-line sales, which fell to Rs12.25bn from Rs34.89bn in 3MFY26.

Cost of sales declined 66% to Rs11.24bn (down from Rs32.82bn), resulting in a 51% drop in gross profit to Rs1.01bn compared to Rs2.06bn in the comparative quarter. However, the company's gross profit margin expanded to 8.22% from 5.92% in 3MFY26.

Other operating income surged nearly ten-fold to Rs229.03m from Rs22.95m, bringing total operating gross generation to Rs1.24bn against Rs2.09bn in the prior-year period.

Operational and administrative expenses showed a mixed trend: administrative and general expenses rose 42% to Rs79.08m (up from Rs55.82m), while other expenses surged over four-fold to Rs65.34m from Rs14.83m. The company also recognized a share of loss from an associate amounting to Rs49.29m (compared to nil in 3MFY26).

Finance costs provided meaningful relief, declining 49% to Rs169.18m compared to Rs331.95m in 3MFY26, which brought the overhead and deduction subtotal to Rs362.89m (down 10% from Rs402.61m).

Profit before income tax and levy fell 48% to Rs873.41m from Rs1.68bn. After accounting for final tax on revenue of Rs88.26m (down 71% from Rs302.32m) and a provision for taxation of Rs113.48m (up 25% from Rs90.59m), Sitara Petroleum Service Limited concluded the first quarter with a net profit of Rs671.67m.

Inflation, high interest rates and geopolitical uncertainty may weigh on fuel demand and costs. Supported by post-IPО equity, its GO supply alliance and 359-bowser fleet, the Company will focus on restoring volumes, protecting margins, reducing borrowings and advancing infrastructure projects.

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