Searle Company Posts Significant Profit Growth in FY2026

The Searle Company Limited has reported a substantial improvement in its financial performance for the year ended June 30, 2026, with both revenue and profitability showing notable growth compared with the previous year.

According to the financial results submitted to the Pakistan Stock Exchange, the company’s Board of Directors recommended a cash dividend of Rs1 per share, equivalent to 10%, for the year ended June 30, 2026. The board also recommended no further bonus shares, right shares or other corporate action alongside the dividend.

Revenue rises sharply

On a consolidated basis, Searle’s revenue from contracts with customers increased to approximately Rs36.81 billion in FY2026 from Rs28.60 billion a year earlier. Gross profit also rose to around Rs19.14 billion, compared with Rs14.07 billion in FY2025.

The company reported profit from operations of Rs5.29 billion, up from Rs3.69 billion in the previous year. After finance costs and taxes, profit from continuing operations stood at approximately Rs535.7 million, compared with Rs807.4 million in FY2025.

The consolidated results also reflect the impact of discontinued operations in the previous year. Searle reported a consolidated profit of Rs535.7 million for FY2026, compared with a loss of Rs1.37 billion in FY2025. Earnings per share improved to Rs0.75, compared with a loss per share of Rs2.38 on a restated basis in the preceding year.

Standalone performance shows strong improvement

The company’s unconsolidated financial statements also showed a significant increase in profitability.

Revenue from contracts with customers reached approximately Rs31.64 billion, compared with Rs24.77 billion in FY2025. Gross profit increased to Rs16.75 billion from Rs12.59 billion.

Profit from operations rose to approximately Rs7.92 billion, compared with Rs2.79 billion a year earlier. After finance costs and taxation, Searle posted an unconsolidated profit of Rs4.00 billion, compared with Rs434 million in FY2025.

Basic and diluted earnings per share consequently increased to Rs6.81 from Rs0.74.

Balance sheet expands

Searle’s consolidated total assets increased to approximately Rs51.46 billion at June 30, 2026, compared with Rs48.93 billion at the end of FY2025.

Consolidated total equity stood at approximately Rs34.34 billion, while total liabilities were around Rs17.12 billion. The company’s consolidated cash and bank balances also increased substantially during the year.

Cash flow improves

The company also recorded a meaningful improvement in cash generation. Consolidated net cash generated from operating activities stood at approximately Rs428.3 million in FY2026, compared with net cash used in operating activities of Rs1.75 billion in FY2025.

Investing activities generated net cash of around Rs2.12 billion, while financing activities used approximately Rs76.3 million. As a result, consolidated cash and cash equivalents increased to about Rs1.58 billion at the end of FY2026, compared with a negative balance of Rs896.5 million reported at the end of the previous year.

Dividend and AGM announced

Along with the annual results, Searle announced a 10% cash dividend of Rs1 per share. The company said its Annual General Meeting will be held on October 22, 2026, at 4:00 p.m. in Karachi.

The share transfer books will remain closed from October 15 to October 22, 2026, with both dates inclusive. Transfers received by the company’s share registrar by the close of business on October 14 will be considered for entitlement to the dividend.

Overall, Searle’s FY2026 results show a considerable improvement in standalone profitability, stronger consolidated revenue, improved operating performance and a recovery in cash generation. The company’s proposed dividend also provides shareholders with a direct distribution from the year’s financial performance.