Service Long March Tyres profit rises 23% to Rs4bn

October 23, 2026 (MLN): Consolidated profit after taxation of Service Long March Tyres Limited (PSX: SLM) rose 23.09% year-on-year to Rs3.69bn for the quarter ended September 30, 2026, compared with Rs3.00bn in the same period last year.

Basic earnings per share (EPS) increased 14.49% to Rs0.474 from Rs0.414, while diluted EPS rose 14.53% to Rs0.473 from Rs0.413 in the corresponding quarter last year.

The growth came from a 34% rise in revenue and a more than ten-fold jump in other income. Higher distribution and administrative costs, increased finance costs and a smaller tax credit partly offset the gains.

Revenue from contracts with customers grew 34.29% to Rs22.19bn from Rs16.53bn. Cost of sales rose slightly faster, by 36.56%, to Rs17.48bn from Rs12.80bn, which limited gross profit growth to 26.49% at Rs4.72bn, compared with Rs3.73bn.

Distribution cost increased 77.66% to Rs635.69m from Rs357.82m, while administrative expenses rose 56.81% to Rs331.64m from Rs211.49m.

As a result, operating profit grew 18.68% to Rs3.75bn from Rs3.16bn.

Other expenses declined 5.74% to Rs171.47m from Rs181.91m, while finance cost and other charges rose 60.38% to Rs263.84m from Rs164.50m.

Other income was the key driver, surging more than ten-fold to Rs289.58m from Rs28.26m.

Profit before taxation climbed 26.83% to Rs3.61bn from Rs2.84bn. A taxation credit of Rs87.89m, down 44.31% from Rs157.82m last year, lifted profit after taxation to Rs3.69bn.

After a foreign currency translation loss of Rs0.48m, total comprehensive income for the period rose 23.07% to Rs3.69bn from Rs3.00bn.

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