Lahore: Service Tyres (Private) Limited, a wholly owned subsidiary of Service Industries Limited, has been assigned a positive outlook by the Pakistan Credit Rating Agency Limited (PACRA), highlighting the company's sustained market position and improving profitability. With a significant presence in both domestic and export markets, the company has shown considerable growth in its financial metrics, as evidenced by increased revenue and profit margins.

According to PACRA, the company's product portfolio includes a variety of tyres and auto spare parts, catering to both original equipment manufacturers and the replacement market. Despite facing a decline in exports, STPL reported a 14.6% increase in topline revenue, reaching approximately PKR 29.0 billion during the first half of the calendar year 2026. The company's financial performance was further supported by a reduction in finance costs and a higher share of profit from its associate, Service Long March Tyres Limited.

STPL's operational efficiency is reflected in its modern production facility located in Gujrat, which has enabled the company to meet rising demand across key markets. Capacity utilization for tyres and tubes remained robust, and the company's capital structure, although leveraged, has been effectively managed to meet working capital needs. The positive outlook assigned by PACRA considers the company's strategic plans for expansion, product diversification, and enhanced market reach, underpinned by strong governance and experienced leadership.

The ratings are contingent upon the company's ability to maintain its competitive position in the tyre industry, sustain profitability, and manage its capital effectively. Continued prudent financial management and successful execution of planned expansions are critical to maintaining the positive outlook.