SRVI

⚡ Flash Summary

Service Industries Limited (SRVI) held a corporate briefing session for its Annual Audited Accounts for the year ended December 31, 2024, and Interim Accounts for the period ended September 30, 2025. Driven by strong market demand and operational excellence, the Group delivered an 18.1% revenue growth till Q3 FY-2025 vs – Q3 FY-2024, achieving Rs. 109 billion (USD 388 million) in sales. The company cemented its status as Pakistan’s largest Tyre & Tube exporter with exports exceeding Rs. 17 billion (USD 61 million) till Q3 FY-2025. SIL’s free float shares are 23,459,109 out of a total paid up share capital of 46,987,454, which make up 49.93%.

📌 Key Takeaways

• 🚀 Group revenue grew by 18.1% to Rs. 109 billion (USD 388 million) in Q3 FY25 compared to Q3 FY24.
• 👟 Footwear exports reached Rs. 15.1 billion (USD 54 million) till Q3 FY25.
• 🌍 Servis operates a nationwide network of 284 retail outlets under the flagship brand name “SERVIS”.
• 🤝 Servis contributed PKR 153 Million till 9M FY 2025, versus PKR 110 Million in entire FY-2024.
• 👑 The company is Pakistan’s largest Tyre & Tube exporter.
• 🏭 Production capacity exceeds 24 million tyres and 57 million tubes annually.
• 🌱 Capital expenditures (CAPEX) of Rs. 7 billion (USD 25 million) invested in SLM’s tyre production expansion.
• 🏢 Free float shares represent 49.93% of total paid-up capital as of September 30, 2025.
• 💹 Market capitalization stood at PKR 64.66 billion (USD 230 million) as of September 30, 2025.
• 🔄 SIL has undergone corporate restructuring, operating now as a holding company with investments in SLM, SGFL, STPL, SRPL, SIL Gulf, and SICPL.
• 🤝 Actively pursuing strategic joint venture partnerships to strengthen production capabilities and advance expertise.

🎯 Investment Thesis

Given Servis Industries’ robust financial performance, strong market position, and strategic corporate restructuring, a HOLD recommendation is appropriate. The company’s focus on growth, operational efficiency, and sustainability efforts presents a positive outlook, but potential risks warrant a cautious approach. A price target revision will depend on future earnings growth and market conditions.

⚡ Flash Summary

Service Industries Limited (SRVI) held a corporate briefing session on November 18, 2025, presenting an overview of its operations and financial performance. The company highlighted its growth strategy, geographical spread, and corporate restructuring. A key focus was placed on the financial results for FY24 and 9M FY25, showcasing revenue growth and export leadership. The company aims to enhance sustainability and pursue strategic partnerships for future growth. Servis also demonstrates commitment to charitable activities donating more than Rs. 153 million during 9M FY-2025.

📌 Key Takeaways

• ⭐ Servis Group’s vision is to become a global, world-class, and diversified company leveraging its brands and people.
• 🏢 The group has an asset base of PKR 120 billion and employs over 15,000 people.
• 🌍 Servis has a presence in over 50 countries.
• 🛍️ Operates a nationwide network of 284 retail outlets under the ‘SERVIS’ brand.
• 🤝 Contributed PKR 153 million in donations till 9M FY2025, compared to PKR 110 million in FY2024.
• 👟 Is the largest footwear exporter in Pakistan.
• ✔️ Is a Tyre market leader in Pakistan.
• 🏭 Has an installed manufacturing capacity of over 24 million tyres and 57 million tubes annually.
• 📈 Delivered 18.1% revenue growth till Q3 FY2025, achieving sales of Rs. 109 billion (USD 388 million).
• Exported footwear worth Rs. 15.1 billion (USD 54 million) till Q3 FY2025.
• 🏭 Rs. 7 billion (USD 25 million) CAPEX till Q3 FY2025 for capacity expansion.
• 💸 Market Capitalization of SIL stood at PKR 64.66 billion (USD 230 million) as of September 30, 2025.
• ♻️ Aims to enhance sustainability by installing 225 KW of solar capacity across 15 stores by 2026.
• 🤝 Pursuing strategic joint venture partnerships for production capabilities.
• 🌱 Committed to corporate social responsibility with Rs. 153 million donated in 9M FY25.

🎯 Investment Thesis

Given the information provided, a HOLD recommendation is appropriate for SRVI. The company exhibits strong growth potential and market leadership in the footwear and tyre sectors. However, there are fluctuations in standalone financials with the demerger of its tyre and retail undertakings. Future performance will rely on strategic initiatives and effective risk management. Without a detailed financial model, a more precise price target would be difficult to determine.

⚡ Flash Summary

Service Industries Limited (SRVI) has announced its financial results for the quarter ended September 30, 2025. The company reported a profit after taxation of PKR 578.193 million for the nine months ended September 30, 2025, compared to a loss of PKR 165.889 million for the same period last year. Earnings per share (EPS) for the nine months ended September 30, 2025, stood at PKR 12.31, against a loss per share of PKR 3.53 in the corresponding period in 2024. No cash dividend, bonus shares, or right shares were recommended by the board.

📌 Key Takeaways

• ✅ Revenue decreased to PKR 5,260.657 million for the nine months ended September 30, 2025, compared to PKR 12,902.220 million in the same period last year.
• 📈 Profit after taxation improved significantly to PKR 578.193 million compared to a loss of PKR 165.889 million year-over-year.
• ⬆️ Earnings per share surged to PKR 12.31, a substantial improvement from a loss per share of PKR 3.53 in the previous year.
• 📊 Gross profit decreased slightly to PKR 684.407 million from PKR 701.608 million year-over-year.
• 📉 Distribution costs decreased from PKR 293.849 million to PKR 245.536 million.
• Administrative expenses increased significantly to PKR 608.411 million from PKR 363.896 million year-over-year.
• Other expenses decreased to PKR 26.457 million from PKR 7.723 million.
• Other income increased substantially to PKR 2,094.925 million from PKR 1,592.452 million.
• ⚠️ Finance costs decreased significantly to PKR 1,015.228 million from PKR 1,580.603 million.
• ⚖️ Profit before taxation and levy improved significantly to PKR 883.700 million compared to PKR 47.989 million year-over-year.
• No cash dividend, bonus shares, or right shares were recommended.
• Total Equity stood at PKR 8,367.004 million as of September 30, 2025, compared to PKR 8,490.181 million as of December 31, 2024.
• Non-current liabilities increased to PKR 5,889.224 million from PKR 4,571.925 million as of December 31, 2024.
• Current liabilities decreased to PKR 6,097.714 million from PKR 9,375.335 million as of December 31, 2024.

🎯 Investment Thesis

Given the conflicting signals of decreased revenue but improved profitability, a HOLD recommendation is appropriate for SRVI. The company’s successful turnaround in profitability is encouraging, but the sustainability of this performance amid revenue decline needs further observation. A price target cannot be accurately determined without more detailed valuation metrics and sector comparisons. The time horizon for this recommendation is medium-term, pending further financial results that confirm or deny the sustainability of the profit improvement trend.