SRVI profit jumps 24% to nearly Rs10bn in 1HCY26

August 27, 2026 (MLN): Service Industries Limited (PSX: SRVI) recorded a 24% increase in its consolidated net profit for the half year ended June 30, 2026, with profit after taxation climbing to Rs9.69bn from Rs7.84bn in the corresponding period last year.

Showing this healthy bottom-line growth, the company's basic and diluted earnings per share (EPS) expanded to Rs12.32 from Rs9.70 in 1HFY25.

The top-line showed strong momentum, with net revenue rising 21% year-on-year to Rs84.75bn from Rs70.29bn in the prior period.

Cost of sales rose at a slower pace of 15% to Rs62.34bn, creating a meaningful positive differential with revenue growth and allowing gross profit to surge 41% to Rs22.41bn from Rs15.84bn a standout improvement reflecting strong margin management and favourable product mix.

On the expenditure side, distribution cost rose 15% to Rs5.88bn, and administrative expenses increased 28% to Rs2.76bn. Other expenses more than doubled to Rs1.16bn from Rs568.64m.

Total operating expenses rose 25% to Rs9.79bn from Rs7.82bn. Despite these higher costs, operating profit before other income surged 57% to Rs12.62bn from Rs8.02bn. Other income grew 35% to Rs815.94m, lifting profit from operations 56% to Rs13.44bn from Rs8.63bn.

Below the operating line, finance cost declined sharply by 26% to Rs2.27bn from Rs3.08bn a meaningful tailwind that propelled profit after finance cost to more than double at Rs11.17bn from Rs5.55bn, a gain of 101%.

Share of profit from the equity accounted investee net of taxation held virtually flat at Rs39.62m from Rs39.67m.

Profit before levy and taxation also more than doubled to Rs11.21bn from Rs5.59bn, a gain of 101%. Levy declined 38% to Rs44.40m from Rs71.26m, bringing profit before taxation to Rs11.16bn again more than double the Rs5.52bn recorded last year, a gain of 102%.

The taxation line, however, swung adversely. Against a tax credit of Rs2.33bn in the prior period, the company recorded a tax charge of Rs1.47bn in the current period a reversal that absorbed a portion of the exceptional pre-tax gains and moderated the bottom-line growth to 24% for the half year.

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