Select Technologies Posts 107% Rise in Annual Profit Despite Lower Revenue

Select Technologies Limited has reported a significant improvement in profitability for the financial year ended June 30, 2026, with annual profit more than doubling compared with the previous year. The company has also recommended a final cash dividend of Rs. 2.25 per share, equivalent to 22.50%, according to its filing with the Pakistan Stock Exchange.

The company’s Board of Directors approved the financial results at a meeting held on September 28, 2026, in Lahore. Alongside the financial results, the board recommended the final cash dividend for shareholders whose names appear in the company’s register on October 19, 2026.

Revenue Declines, but Profitability Improves

Select Technologies recorded net revenue of approximately Rs. 31.56 billion during FY2026, compared with Rs. 48.89 billion in FY2025. Despite the decline in revenue, gross profit increased to around Rs. 5.27 billion, from approximately Rs. 4.37 billion a year earlier.

Operating profit also improved, reaching about Rs. 4.53 billion compared with Rs. 3.98 billion in the preceding year. The improvement at the operating level helped the company deliver stronger bottom-line results despite the lower revenue base. The financial statements attached to the filing include the company’s statement of profit or loss and other financial statements.

Profit More Than Doubles

The company reported profit before income tax of approximately Rs. 2.72 billion in FY2026, up from around Rs. 2.09 billion in FY2025.

After taxation, profit for the year reached approximately Rs. 2.70 billion, compared with Rs. 1.30 billion in FY2025. This represents an increase of roughly 107% year-on-year.

Earnings per share also strengthened considerably, rising to Rs. 3.38 from Rs. 1.63 in the previous financial year. These figures are presented in the company’s FY2026 statement of profit or loss.

Dividend of Rs. 2.25 Per Share

Reflecting the year’s results, the board recommended a final cash dividend of Rs. 2.25 per share, equivalent to 22.50%. No bonus shares or right shares were recommended as part of the announcement.

The dividend entitlement will apply to shareholders whose names are recorded in the Register of Members on October 19, 2026.

Stronger Equity Position

The company’s financial position also showed growth in shareholders’ equity. According to the statement of financial position, total equity increased to approximately Rs. 13.52 billion as of June 30, 2026, compared with approximately Rs. 10.82 billion at the end of FY2025.

Total assets stood at around Rs. 36.68 billion, compared with Rs. 37.13 billion a year earlier. The statement also shows issued and subscribed share capital of Rs. 8 billion, while unappropriated profit and revenue reserves increased to approximately Rs. 5.52 billion.

Annual General Meeting Scheduled for October 26

Select Technologies has scheduled its Annual General Meeting for October 26, 2026, at 10:30 a.m. in Lahore, where shareholders will have the opportunity to consider the company’s annual financial statements and other matters on the agenda.

The company said its Annual Report for the year ended June 30, 2026, will be transmitted through PUCARS at least 21 days before the AGM.

A Year of Improved Earnings

Select Technologies’ FY2026 results present a notable contrast: revenue declined substantially, while gross profit, operating profit and net earnings all increased. The company’s profit rose to Rs. 2.70 billion, while earnings per share more than doubled to Rs. 3.38.

The recommended Rs. 2.25-per-share final dividend further forms part of the company’s FY2026 shareholder distribution announcement. Investors will now be watching the company’s upcoming AGM and subsequent annual report for additional details on its financial performance and business outlook.