SPEL Limited Posts Rs778.8 Million Profit Despite Revenue and Margin Pressure

SPEL Limited has reported a profit after taxation of Rs778.8 million for the nine-month period ended March 31, 2026, compared with Rs801.4 million recorded during the corresponding period last year.

According to the company’s financial results, net sales stood at Rs6.72 billion during the nine months, slightly below Rs6.89 billion in the same period of 2025. The decline in revenue was accompanied by a reduction in gross profit, which fell to Rs1.77 billion from Rs1.80 billion.

Operating Performance

SPEL’s operating profit decreased to approximately Rs1.35 billion, compared with Rs1.45 billion a year earlier. Administrative expenses increased to around Rs349.2 million, while selling and distribution expenses also rose to Rs73.9 million.

The company reported profit before taxation of Rs1.29 billion for the nine-month period, compared with Rs1.33 billion in the corresponding period of the previous year. After accounting for taxation of approximately Rs512.3 million, profit after taxation stood at Rs778.8 million.

Earnings per share consequently eased to Rs4.10, compared with Rs4.22 for the nine months ended March 31, 2025.

Quarterly Results Also Show Decline

For the third quarter alone, SPEL recorded net sales of approximately Rs2.36 billion, compared with Rs2.38 billion in the same quarter last year. Gross profit declined to around Rs633.9 million from Rs705.6 million.

Profit after taxation for the quarter was Rs310.7 million, against Rs339.1 million in the comparable quarter. Quarterly earnings per share stood at Rs1.64, compared with Rs1.79 previously.

Cash Flow and Investment Activity

The company generated approximately Rs960.8 million in net cash from operating activities during the nine-month period, substantially higher than the Rs404.1 million generated in the same period last year.

At the same time, SPEL continued to invest in its operations. Cash used in investing activities amounted to approximately Rs781.9 million, including around Rs600.9 million spent on the acquisition of property, plant and equipment.

The company’s cash and cash equivalents stood at approximately Rs2.9 million at March 31, 2026, compared with Rs167.6 million at the end of March 2025.

No Interim Cash Dividend Declared

In its communication to the Pakistan Stock Exchange, SPEL stated that the interim cash dividend for the period ended March 31, 2026 was nil per share. The company also indicated no bonus shares, right shares or other corporate action for the period.

Overall, SPEL’s nine-month results show that the company remained profitable despite lower sales and earnings compared with the previous year. Stronger operating cash generation and continued investment in property, plant and equipment remain notable features of the financial performance, while the decline in quarterly and nine-month profitability highlights the pressure on margins during the period.