Service Industries Limited (PSX: SRVI) recorded a 12.41% year-on-year expansion in consolidated profit after taxation, closing the nine-month period ending September 30, 2026, at Rs13.40 billion. While core operations yielded explosive margin growth, the final earnings yield was heavily suppressed by a renewed “taxation charge,” which absorbed substantial pre-tax operational gains across the enterprise.
The corporate entity delivered robust topline momentum, with net revenue surging 19.97% to reach Rs130.86 billion, up from Rs109.07 billion during the corresponding period last year. Crucially, the cost of sales escalated at a proportionately slower pace of 17.19% to settle at Rs98.45 billion. This underlying operational efficiency lifted gross profit by an aggressive 29.30%, topping Rs32.41 billion.
“A taxation charge, against a credit last year, absorbed much of the gain at the pre-tax level.”
Overhead expenditures broadened during the three quarters. Distribution costs increased 12.82% to Rs8.61 billion, while administrative expenses jumped 26.00% to Rs4.22 billion. Concurrently, other expenses spiked 60.71% to Rs1.54 billion, though this operational drag was partially offset by a 37.09% rise in other income, which brought in Rs1.34 billion. Ultimately, profit from continuing operations climbed 37.41% to Rs19.36 billion.
In a tight macroeconomic environment, the company successfully reduced its debt servicing burden. Finance costs fell by 10.21% to Rs3.66 billion, down from Rs4.08 billion the previous year, providing critical liquidity relief. Bolstered further by a 57.29% decline in statutory levies, profit before taxation skyrocketed 57.93% to Rs15.74 billion.
| Consolidated Financial Metric (9M Ended Sept 30) | 2026 Valuation | 2025 Valuation | YoY Change |
| Net Revenue |
Rs130.86 billion |
Rs109.07 billion |
+19.97% |
| Cost of Sales |
(Rs98.45 billion) |
(Rs84.01 billion) |
+17.19% |
| Gross Profit |
Rs32.41 billion |
Rs25.06 billion |
+29.30% |
| Profit From Operations |
Rs19.36 billion |
Rs14.09 billion |
+37.41% |
| Finance Cost |
(Rs3.66 billion) |
(Rs4.08 billion) |
-10.21% |
| Profit Before Taxation |
Rs15.74 billion |
Rs9.96 billion |
+57.93% |
| Taxation Charge / (Credit) |
(Rs2.33 billion) |
Rs1.95 billion |
N/A |
| Profit After Taxation |
Rs13.40 billion |
Rs11.92 billion |
+12.41% |
However, the final net income was heavily diluted by state taxation frameworks. The company booked a severe taxation charge of Rs2.33 billion for the current nine-month window. This stands in stark contrast to the Rs1.95 billion taxation credit granted during the same period in 2025, which had artificially inflated the prior year’s comparative baseline. Consequently, basic and diluted earnings per share (EPS) registered a muted 7.20% increase, climbing to Rs15.78 from Rs14.72.