SPEL Limited has reported a profit after tax of Rs1.14 billion for the financial year ended June 30, 2026, while the company’s board has recommended a final cash dividend of Rs0.50 per share.

SPEL Limited has announced its financial results for the year ended June 30, 2026, showing a year of lower sales and profitability compared with the previous year, although the company continued to generate more than Rs1.15 billion in net cash from operating activities.

According to the company’s filing with the Pakistan Stock Exchange, the Board of Directors approved the financial results at its meeting held on August 17, 2026. The board also recommended a final cash dividend of Rs0.50 per share, equivalent to 10%, in addition to the interim dividend of Rs0.50 per share already paid during the year.

Sales and Profitability

SPEL’s net sales declined to Rs9.41 billion in FY2026 from Rs9.63 billion a year earlier. Gross profit also fell to Rs2.47 billion, compared with Rs2.59 billion in FY2025.

Operating profit stood at Rs1.94 billion, down from Rs2.07 billion in the previous year. The decline came despite an improvement in impairment reversal/(loss) on financial assets, which moved to a gain of Rs18.46 million from a loss of Rs32.34 million in FY2025.

Profit before taxation decreased to Rs1.86 billion, compared with Rs1.99 billion in FY2025. After taxation of Rs718.93 million, the company posted a profit after tax of Rs1.14 billion, against Rs1.25 billion a year earlier.

As a result, basic and diluted earnings per share declined to Rs5.99 from Rs6.60 in FY2025.

Stronger Shareholders’ Equity

Despite the decline in annual earnings, SPEL’s financial position strengthened during the year. Shareholders’ equity increased to Rs7.32 billion as of June 30, 2026, compared with Rs6.11 billion a year earlier.

Accumulated profit rose to Rs5.01 billion, while the surplus on revaluation of land increased to approximately Rs1.07 billion from Rs827.71 million.

The company also increased its investment in property, plant and equipment. Operating fixed assets stood at Rs4.23 billion, while capital work in progress increased substantially to Rs279.42 million from Rs48.36 million in FY2025.

Operating Cash Flow Remains Healthy

SPEL generated Rs2.11 billion in cash from operations during FY2026, up from Rs1.91 billion in the previous year. After payments including taxes, workers’ funds and financing-related costs, net cash generated from operating activities amounted to Rs1.16 billion, compared with Rs1.22 billion in FY2025.

The company invested heavily during the year, with Rs723.79 million spent on property, plant and equipment, compared with Rs137.89 million in FY2025. It also invested Rs109.21 million in short-term investments. Consequently, net cash used in investing activities increased to Rs748.73 million.

Financing activities also resulted in a cash outflow of Rs474.78 million, including lease liability repayments, long-term loan repayments and cash dividends. Overall, cash and cash equivalents at year-end stood at Rs69.70 million, compared with Rs133.93 million at the end of FY2025.

Final Dividend and AGM

The board has recommended a final cash dividend of Rs0.50 per share, bringing the total dividend declared for FY2026 to Rs1.00 per share when combined with the Rs0.50 interim dividend already paid. No bonus shares, right shares or other corporate actions have been recommended.

The company’s Annual General Meeting is scheduled for October 9, 2026, at 3:30 PM in Lahore. Shareholders whose names appear in the Register of Members on October 8, 2026, will be entitled to the announced final dividend. The share transfer books will remain closed from October 3 to October 9, 2026, inclusive.

Overall, SPEL’s FY2026 results reflect a moderate slowdown in revenue and earnings, but the company maintained strong operating cash generation and ended the year with a significantly stronger equity position. The continued investment in fixed assets also indicates ongoing spending on the company’s operating capacity.