SPEL FY26 profit drops 9%

August 18, 2026 (MLN): SPEL Limited (PSX: SPEL) reported a 9% decline in its net profit for the fiscal year ended June 30, 2026, recording Rs1.14bn compared to Rs1.25bn in the preceding year.

Alongside the financial results, the company announced a cash dividend of Rs0.50 per share.

Reflecting this bottom-line compression, the company's basic and diluted earnings per share (EPS) fell to Rs5.99 from Rs6.60 in FY25.

The dip in earnings was primarily triggered by a mild contraction in top-line revenue.

SPEL’s net sales posted a 2% year-on-year decrease, falling to Rs9.41bn from Rs9.63bn.

Although the company managed to trim its cost of sales by 2% to Rs6.94bn, the top-line contraction resulted in a 5% drop in gross profit, which settled at Rs2.47bn compared to Rs2.59bn in the prior year.

On the operational front, overheads grew moderately. Administrative expenses rose by 12% to Rs464.69m, while selling and distribution expenses increased by 15% to Rs88.70m.

However, the company received operational support from a positive turnaround of Rs18.46m in impairment reversals on financial assets (reversing a loss of Rs32.34m last year). Despite this recovery, operating profit fell 6% to Rs1.94bn.

Below the operating line, SPEL benefited from debt servicing relief as finance costs dropped 36% to Rs81.40m (down from Rs127.55m in FY25).

Other charges also fell 17% to Rs150.17m. However, a 36% decline in "other income" (down to Rs150.38m) moderated these savings, pulling profit before taxation down by 7% to Rs1.86bn.

The company absorbed a 3% lower taxation expense of Rs718.93m (down from Rs737.90m in FY25).

Supported by the lighter tax impact and lower finance costs, SPEL Limited securely closed the fiscal year with its final net profit contained to Rs1.14bn.