Service Long March Tyres Limited Posts Higher Revenue and Profit in First Quarter of FY2027
Service Long March Tyres Limited has reported a strong financial performance for the first quarter ended September 30, 2026, with higher revenue and profitability compared with the corresponding period last year. According to the company’s financial results approved by its Board of Directors on October 23, 2026, the tyre manufacturer recorded growth in sales, gross profit, and net earnings.
Revenue Rises to Rs. 22.19 Billion
The company’s revenue from contracts with customers increased to Rs. 22.19 billion during the quarter, compared with Rs. 16.53 billion in the same period of the previous year. This represents an increase of approximately 34.3%, reflecting stronger reported sales during the period.
Cost of sales also increased, reaching Rs. 17.48 billion against Rs. 12.80 billion a year earlier. Despite the higher costs, the company improved its gross profit to Rs. 4.72 billion from Rs. 3.73 billion in the corresponding quarter of 2025.
Operating Profit and Net Earnings Improve
Service Long March Tyres recorded an operating profit of Rs. 3.75 billion for the quarter, compared with Rs. 3.16 billion in the same period last year, representing growth of approximately 18.7%.
Profit before taxation increased to Rs. 3.61 billion from Rs. 2.84 billion. Meanwhile, profit after taxation climbed to Rs. 3.69 billion, compared with Rs. 3.00 billion in the corresponding quarter of the previous year, an increase of approximately 23.1%.
Earnings per share also improved. Basic earnings per share rose to Rs. 0.474 from Rs. 0.414, while diluted earnings per share increased to Rs. 0.473 from Rs. 0.413.
The financial statements show that other income increased substantially to Rs. 289.58 million from Rs. 28.26 million. Finance costs and other charges, however, rose to Rs. 263.84 million from Rs. 164.50 million, while distribution and administrative expenses also increased.
Financial Position and Investment Activity
As of September 30, 2026, the company’s total assets stood at Rs. 81.02 billion, compared with Rs. 78.07 billion at June 30, 2026. Total shareholders’ equity was reported at Rs. 42.96 billion, while total liabilities reached Rs. 38.06 billion.
The company also reported short-term investments of Rs. 6.89 billion at the end of the quarter, compared with none recorded under this category at the previous financial year-end. Cash and bank balances, meanwhile, declined to Rs. 1.82 billion from Rs. 11.40 billion.
The cash flow statement shows that net cash used in operating activities amounted to Rs. 3.47 billion. Capital expenditure on fixed assets reached Rs. 2.47 billion, while the company invested approximately Rs. 6.89 billion in mutual funds during the quarter. It also paid approximately Rs. 6.47 billion in dividends relating to the financial year ended June 30, 2026.
These figures indicate that although profitability improved, the company also undertook significant investment and financing activities during the reporting period.
No Interim Dividend Announced
Alongside the financial results, the Board of Directors did not recommend a cash dividend, bonus shares, or right shares for the first quarter ended September 30, 2026.
The company stated that its quarterly report for the period would be transmitted separately through the Pakistan Unified Corporate Actions and Reporting System (PUCARS) within the specified timeframe.
Outlook
Service Long March Tyres’ first-quarter results highlight growth in revenue and earnings compared with the previous year. The increase in sales and net profit represents a positive development in the company’s financial performance.
However, the decline in cash and bank balances, negative operating cash flow, higher short-term financing, and increased operating expenses remain important factors to monitor in subsequent quarters. The company’s future performance will depend on its ability to sustain revenue growth, manage costs, and maintain a healthy balance between profitability, investment, and liquidity.
