Service Global Footwear 2025 Profit Jumps 75% to Rs1.94 Billion on Higher Sales

Service Global Footwear, the export-focused shoe manufacturer spun out of the Service group, had a strong 2025. Profit grew far faster than sales, a sign that margins widened, and the company rewarded shareholders with a dividend while setting up a new subsidiary to push into athletic footwear.

What the Service Global Footwear 2025 results showed

Service Global Footwear reported net profit of Rs1.94 billion for the year ended December 31, 2025, up 75 percent from Rs1.11 billion in 2024. Revenue from contracts with customers rose 14.34 percent to Rs19.89 billion from Rs17.39 billion. Earnings per share climbed to Rs9.38 from Rs5.37, with diluted EPS at Rs9.32. The board declared a final cash dividend of Rs2.00 per share. The gap between profit growth of 75 percent and sales growth of 14 percent is the key detail. It means each rupee of sales turned into far more profit than the year before, pointing to wider margins, a better product mix, or tighter costs.

Why it matters for footwear and export stocks

Service Global Footwear sells a large share of its output abroad, which ties its fortunes to export demand and the rupee. A weaker rupee makes Pakistani-made shoes cheaper for foreign buyers and lifts the rupee value of dollar sales, both of which help an exporter. Lower input costs, such as leather and synthetic materials, and steady demand from international brands also feed margins. When a manufacturer grows profit five times faster than sales, it usually reflects some mix of these tailwinds working together. Separately, the company approved a long-term equity investment of up to Rs1 billion to set up Service Athletic Global Footwear as a 51 percent owned subsidiary, a move into the higher-growth sports-shoe segment.

Which stocks, and why

This is a direct, company-specific result for Service Global Footwear, and the read is clearly positive. A 75 percent profit jump, widening margins, a higher EPS, and a dividend together make a high-quality year. The new athletic-footwear subsidiary adds a growth angle, though it will take time and capital before it contributes. The influence is high because this is the company's core result and the margin gains are sizable. The main risks sit outside the company, in export demand and the rupee.

What to watch

Track export order trends and the rupee, since both swing an exporter's earnings. Watch whether the wide margins of 2025 hold or were helped by one-off cost or currency moves, the cost of raw materials, and how quickly the new athletic-footwear subsidiary scales up. The dividend stance in future years will signal how confident management is in repeating this performance.