SRVI Q1CY26 profit nearly triples

April 28, 2026 (MLN): Service Industries Limited (PSX: SRVI) reported a spectacular 3x surge in its consolidated profit after taxation for the first quarter ended March 31, 2026, reaching a massive Rs5.05bn compared to Rs1.69bn in the corresponding period last year.

Reflecting this massive bottom-line expansion, the company's basic and diluted earnings per share (EPS) jumped 2.4x to Rs64.17 from Rs26.60 in Q1 2025.

The primary driver of this exceptional profitability was robust top-line growth coupled with effective cost absorption.

SRVI’s net revenue posted a solid 30% year-on-year increase, rising to Rs42.24bn from Rs32.52bn.

Concurrently, the cost of sales grew at a slower pace of 23%, reaching Rs30.81bn.

Because revenue growth comfortably outpaced the rise in direct production costs, the company’s gross profit secured a strong 54% expansion, settling at Rs11.43bn up from Rs7.43bn in the prior year.

On the operational front, overheads grew but remained well supported by the gross margin expansion.

Distribution costs rose by 24% to Rs3.04bn, administrative expenses increased by 10% to Rs1.19bn, and other expenses saw a sharp 125% spike to Rs484.64m.

Despite total operating expenses rising by 26%, the sheer strength of the gross profit allowed the operating profit before other income to leap by 83% to Rs6.71bn.

Further supported by a 23% rise in other income (Rs249.78m), the total profit from operations grew by an impressive 80% to Rs6.96bn.

Below the operating line, SRVI experienced highly favorable financial dynamics. The company successfully slashed its finance costs by 31%, dropping them to Rs991.86m from a heavier Rs1.44bn burden in Q1 2025.

This powerful combination of soaring operating profits and reduced debt-servicing costs propelled the profit before levy and taxation up by an impressive 144% to Rs5.99bn.

The company also benefited from a 20% reduction in its statutory levy, dropping to Rs33.73m.

While the income tax expense did increase by 24% to Rs906.53m, the phenomenal pre-tax gains allowed Service Industries to securely close the quarter with its massive  leap in final total net profit, settling at Rs5.05bn.

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