Service Industries Limited has reported a stronger financial performance for the half year ended June 30, 2026, with significant growth in revenue, gross profit and operating profit. The company’s Board of Directors approved the separate and consolidated financial statements at its meeting on August 27, 2026. No cash dividend, bonus shares or right shares were recommended for the period.
According to the consolidated financial statements, Service Industries generated net revenue of approximately Rs84.75 billion during the six-month period, compared with Rs70.29 billion in the corresponding period of 2025. This represents growth of around 21%, highlighting stronger business activity across the group.
The improvement was also visible at the gross-profit level. Consolidated gross profit increased to approximately Rs22.41 billion, up from Rs15.84 billion a year earlier. This indicates that the increase in sales was accompanied by a meaningful improvement in profitability before distribution, administrative and other operating expenses.
Operating performance also strengthened considerably. Profit from operations reached approximately Rs13.44 billion, compared with Rs8.63 billion in the first half of 2025. The company also recorded other income of about Rs816 million during the period.
Another positive development was the reduction in finance costs. Consolidated finance costs declined to around Rs2.27 billion, compared with Rs3.08 billion in the same period last year. As a result, profit before taxation rose to approximately Rs11.16 billion, more than double the Rs5.52 billion reported for the corresponding period of 2025.
The group’s profit after taxation for the first half of 2026 was reported at approximately Rs9.69 billion, compared with Rs7.84 billion in the first half of 2025. Of this amount, about Rs5.79 billion was attributable to equity holders of the holding company, while Rs3.90 billion was attributable to non-controlling interests.
The balance sheet also shows substantial investment in the group’s asset base. Consolidated fixed assets stood at approximately Rs56.32 billion at June 30, 2026, compared with Rs49.22 billion at the end of December 2025. Capital expenditure during the first half amounted to approximately Rs8.97 billion, reflecting continued investment in operating assets.
Cash generated from consolidated operations reached approximately Rs9.87 billion, compared with Rs8.22 billion in the corresponding period of 2025. After finance costs, taxes and other operating cash movements, net cash generated from operating activities stood at approximately Rs4.88 billion.
The company continued to manage its financing position during the period. Long-term financing increased on a net basis, while short-term borrowings declined by approximately Rs11.88 billion. The group also received Rs7.48 billion from shares issued by subsidiary companies to non-controlling interests.
At the standalone company level, however, the picture was more mixed. Service Industries Limited’s unconsolidated revenue declined to approximately Rs2.83 billion from Rs4.00 billion in the first half of 2025. Nevertheless, other income increased substantially to approximately Rs1.77 billion, helping the company report profit before taxation of about Rs1.03 billion.
Overall, the consolidated results point to a considerably stronger first half for Service Industries in 2026. Higher revenue, improved gross and operating profitability, lower finance costs and increased investment in fixed assets were key features of the period. The company’s consolidated financial position and cash generation also indicate continued activity across the wider group.
With the first half now completed, investors and market observers will likely focus on whether Service Industries can sustain this momentum through the remainder of 2026 and translate its improved operating performance into continued earnings growth.
