Service Long March Tyres Limited (SLM) delivered a strong financial performance for the year ended June 30, 2026, with consolidated profit after tax rising to Rs13.50 billion, compared with Rs10.03 billion in the previous year.

The company’s Board of Directors approved the audited financial statements at its meeting held on August 17, 2026 and recommended a final cash dividend of Rs0.83 per share, equivalent to 41.50%.

Revenue rises sharply

According to the consolidated financial statements, revenue from contracts with customers increased to Rs71.71 billion in FY2026 from Rs49.84 billion a year earlier, representing growth of about 44%.

The higher revenue translated into a significant improvement in gross profit, which increased to Rs18.15 billion from Rs10.75 billion. As a result, the gross profit margin also improved compared with the previous year.

Operating profit stood at Rs14.23 billion, up from Rs8.33 billion in FY2025, reflecting stronger earnings from the company’s core operations.

Profitability strengthens

SLM’s consolidated profit before taxation reached Rs13.03 billion, compared with Rs7.10 billion in the previous year.

Profit after taxation rose to Rs13.50 billion, up approximately 35% year-on-year. The company also reported a basic earnings per share of Rs1.827, compared with Rs1.399 in FY2025, while diluted EPS increased to Rs1.822 from Rs1.376.

The company’s finance cost and other charges declined to Rs752.6 million from Rs1.12 billion, providing additional support to profitability.

Stronger financial position

SLM’s consolidated total assets increased substantially to Rs78.04 billion as of June 30, 2026, compared with Rs52.86 billion a year earlier.

Shareholders’ equity also increased to Rs45.70 billion from Rs27.20 billion. Meanwhile, accumulated profit climbed to Rs23.07 billion, compared with Rs12.57 billion at the end of FY2025.

The balance sheet also reflects a significant increase in property, plant and equipment, which stood at Rs38.37 billion, indicating continued investment in the company’s productive capacity.

Cash generation improves

The company’s cash-flow performance also strengthened during FY2026. Net cash generated from operating activities reached approximately Rs11.30 billion, compared with Rs5.57 billion in the previous year.

At the same time, the company continued to invest heavily, with approximately Rs10.45 billion allocated to capital work-in-progress and another Rs141.9 million spent on operating fixed assets.

Cash and cash equivalents at year-end stood at Rs10.33 billion, compared with just Rs1.01 billion a year earlier.

Dividend announced

Alongside the strong annual results, the Board recommended a final cash dividend of Rs0.83 per share, equivalent to 41.50%. The company has scheduled its Annual General Meeting for September 19, 2026, at Shalimar Tower Hotel in Lahore.

The share transfer books will remain closed from September 12 to September 19, 2026, with transfers received by the close of business on September 11 eligible for dividend entitlement and participation in the AGM.

Outlook

Service Long March Tyres enters the new financial year with substantially higher revenue, stronger profitability, improved operating cash flows and a significantly larger equity base. The sharp increase in earnings and continued investment in fixed assets point to a year of considerable expansion for the company.

For shareholders, the combination of higher earnings per share and the recommended cash dividend provides a positive conclusion to FY2026. The company’s ability to sustain revenue growth while maintaining profitability and managing financing costs will remain important factors to watch in the coming year.